Chris Oglesby

Bruntwood finalises £600m refinancing with £221m deal

Simon Donohue

Bruntwood has completed a year-long exercise to refinance its entire £600m of debt facilities by agreeing a £221m, five-year financing deal with a syndicate of four banks.

Barclays, HSBC, The Royal Bank of Scotland and Santander UK have each provided £55.25m to refinance existing debt and to support Bruntwood's future growth plans.

The deal was co-ordinated by Barclays. Pinsent Mason acted as legal advisers to the banks and Bruntwood were advised by Addleshaw Goddard. HSBC also acted as sole hedge co-ordinator and execution bank for the restructuring of the underlying swap transactions, which were subsequently syndicated amongst the four lending banks. RBS continued it's role as facility agent.

Based in Manchester, Bruntwood is a family-owned and run commercial property company which offers office space, serviced offices, virtual offices, retail space and meeting rooms.

It has a portfolio of 110 buildings over four cities, including Manchester and Liverpool.

Chris Oglesby, Bruntwood's chief executive, said: "Bruntwood has always made long term sustainable growth its priority, rather than short-term commercial gain.

"As a result, it is companies such as ourselves that have emerged from the recession fitter and stronger. In a market where many property owners are constrained by excess debt, Bruntwood's financial strength remains a major advantage."

Kevin Crotty, chief financial officer, said: "12 months ago, Bruntwood had £435m of Commercial Mortgage Backed Securitisation (CMBS) debt and £165m of bank facilities to refinance against the backdrop of a CMBS market that was closed and banks that were reducing their exposure to property.

"Bruntwood has demonstrated its financial standing and its ability to innovate in raising capital. In December we raised £120m from L&G, only their second ever 10 year property loan.

"In February our bondholders unanimously approved the extension of £229m of our CMBS out to 2016. In July we issued a seven year £50m retail bond, and now we have completed an amazing 12 months with a five £221m syndicated facility."

Commenting on behalf of the banks, David Hardcastle, head of the Barclays Real Estate team in the North of England, said: "Bruntwood is growing thanks to their astute management team and by continuing to provide the finance to support their ongoing strategic plans, the banking group is confident Bruntwood will take full advantage of the growth opportunities in the markets they operate in."

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