Portfolio of UK Shopping Centres
Bircroft was approached to re-finance debt secured against a portfolio of UK Shopping Centres. The existing debt was reaching maturity with a lender who had decided to withdraw from the retail market. Amidst negative sentiment over the Retail sector, Bircroft was instructed to re-position the existing debt on favourable terms.
The client’s initial strategy was to utilise a debt package to underpin the sale of the portfolio but following a change in direction, it was decided to retain the properties and utilise the debt terms on offer. Bircroft successfully originated a loan facility of c£45m on a new 5-year facility at a margin of 2.70% with soft amortisation.
- Challenging asset class given current retail environment
- Valuation issues overcome via amended loan profiling