Grosvenor fund refinances Liverpool ONE

Grosvenor Fund Management has completed the refinancing of Grosvenor Liverpool Fund, which owns the 2.4m sq ft Liverpool ONE shopping centre.

The bank debt for the fund has been refinanced with a £410m facility on a seven-year term with a club of banks comprising BNP Paribas, Crédit Agricole CIB, Royal Bank of Scotland, Societe Generale and Sumitomo Mitsui Banking Corporation, on terms that “represent a significant improvement compared to the previous 2010 facility”, Grosvenor said.

The loan to value ratio is understood to be around 40%. Previously, there were four lenders on the 2010 facility: Wells Fargo, RBS, Credit Agricole, and Deka.

James Raynor, chief executive of Grosvenor Fund Management, said: “We are delighted with the pricing and terms achieved on the facility, and are very pleased with the composition of the club of lenders. We would not have been able to achieve such a positive outcome without their support.

“This is an exciting milestone for the fund and follows a strong 12 months that saw investors committing to the modernisation of the Fund earlier in the year. These combined activities have provided us with a stable platform from which to implement a long-term asset management strategy for Liverpool ONE and reflects Grosvenor Fund Management’s ongoing commitment to Liverpool.”

Miles Dunnett, portfolio director for Grosvenor Liverpool Fund, added: “It has been another successful year for Liverpool ONE. Occupiers have seen sales growth of 9% and footfall is up 2.5%, both of which are ahead of the UK average. As a result, there has been unprecedented occupier demand and more than 25 new stores opened in 2015, with many brands choosing Liverpool ONE for their regional debuts, or first stores outside London. New arrivals include Ugg, Wahaca and the White Company.

“Momentum is already building for 2016, Living Ventures open a bar and restaurant in January, and Victoria’s Secret will open a 10,000sq ft flagship store before the summer.”