St Christopher's Place Estate

RNS Number : 3786O

F&C Commercial Property Trust Ld

28 June 2010

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION IN PARTICULAR THE UNITED STATES, CANADA, AUSTRALIA AND JAPAN

28 June 2010

F&C COMMERCIAL PROPERTY TRUST LIMITED (THE "COMPANY")

ST. CHRISTOPHER'S PLACE ESTATE AND NEW DEBT FACILITIES

The Board is pleased to announce that the Company has transferred its interests in the St. Christopher's Place Estate to a newly established indirect subsidiary, SCP Estate Limited ("SCP").  SCP is wholly owned by SCP Estate Holdings Limited ("SCPH"), which is itself wholly owned by the Company. Three units within the estate are subject to consents prior to transfer and these are expected to be formally transferred in the near future.

SCPH has also entered into a new £50 million bank facility with Barclays Bank plc (the "SCP Facility").  The SCP Facility is secured only over the assets of SCPH and SCP, including fixed legal charges over the properties in the St. Christopher's Place Estate.  The SCP Facility is repayable in 2017.  SCPH has drawn down the full £50 million available under the facility to fund partially the acquisition of the estate from F&C Commercial Property Holdings Limited.  The interest payable under the SCP Facility has been fixed through an interest rate swap at an aggregate interest rate of 4.88 per cent. per annum for the full term of the facility, including the margin.  The total costs incurred by SCPH in putting in place the SCP Facility were £800,000, including the facility arrangement fee.  These costs will be amortised over the life of the facility.

The SCP Facility includes terms which are typical for a facility of this nature, including a loan to value covenant at sixty per cent. and an interest cover limit of 1.4 times.  The facility also includes a right of Barclays Bank plc to request repayment if SCPH ceases to be a wholly owned subsidiary of the Company and an event of default if SCP ceases to be a wholly owned subsidiary of SCPH. If shareholders approve the recommended proposals announced by the Board on 9 June 2010, Barclays Bank plc has confirmed that it will not request repayment of the facility.

The Board believes that the SCP Facility offers attractive terms for longer term debt and provides additional cash to take advantage of future investment opportunities. The SCP Facility also diversifies the periods to the repayment of the Company's borrowings since the existing secured bonds will be repaid in 2015.

All enquiries:

The Company Secretary, Northern Trust International Fund Administration Services (Guernsey) Limited

Renee McIver
Tel: [phone]
Fax: [phone]

 

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