TIAA Henderson Real Estate has secured a new £400 mln (approx. €555.9 mln) debt financing on behalf of its c.£1.1 bln (approx. €1.5 bln) flagship UK Retail Warehouse Fund. The new facility has been provided by a consortium comprising Wells Fargo, as Facility Agent, together with Aareal Bank and Helaba, and replaces the current financing which is due to mature at the end of this year.
The deal, negotiated on highly-competitive terms, is structured for a term of up to seven years, and consists of a £250 mln (approx. €347.3 mln) term loan and a £150 mln (approx. €208.4 mln) revolving tranche, maximizing the Fund’s flexibility towards operational leverage, over the course of the loan period whilst exploiting the low financing rates currently available.
The prime retail warehouse Fund invests in retail parks across the UK, with a portfolio comprising 14 dominant schemes and with a fund value of c.£1.1 bln.
Colin Throssell, Head of Treasury at TH Real Estate, says: “This is a great result for the Fund and its investors, and is a way to reward those that supported the F und’s extension last year. Our success in achieving such a competitive and flexible financing for the next period of the Fund’s life, sourced through new and existing lenders, is a testament to our strong banking relationships and reputation for good stock selection, asset management and integrity.”
Source: TIAA Henderson Real Estate