Repayment of debt

RNS Number : 4607Z

Land Securities Group Plc

22 September 2009

 



22 September 2009 

Land Securities Group PLC ('Land Securities')

LAND SECURITIES PAYS DOWN £1.5BN OF DEBT BUT MAINTAINS FINANCIAL FIREPOWER IN HUNT FOR OPPORTUNITIES 

Land Securities Group PLC has today announced that it is repaying £1.5 billion of its debt and will repay further facilities during the calendar year.

The decision allows Land Securities to return to a normal operating environment in its Security Group debt structure and positions the business strongly, while retaining significant firepower from the Rights Issue proceeds and asset sales to take advantage of market opportunities. 

After paying back the £1.5 billion it is estimated that the Loan to Value in its debt structure will be approximately 59% based on March 2009 valuations.  

Commenting on the decision, Francis Salway, Chief Executive said:

'We said at the time of our Rights Issue that we would continue to actively manage our balance sheet and repay debt when appropriate.  Our recent activity in executing sales, raising new debt facilities against assets and managing costs has reinforced our confidence in our forecasts and means we have taken this step earlier than our internal plans had assumed.

'Today's decision strengthens our hand in positioning the business in a secure and strong state ready to take advantage of future opportunities.'

-Ends-

For further information, please contact:

Mel Winsor/Donal McCabe
Land Securities Group PLC
T [phone]

Notes to editor:

Land Securities

Land Securities is the UK's leading Real Estate Investment Trust and has a large portfolio of commercial property in London and UK regional cities.  

The portfolio comprises 45 retail parks and shopping centres including the quadruple award winning Cabot Circus in Bristol and The Centre in Livingston. It is also the leading provider of office accommodation in London owning properties such as the Piccadilly Lights, Westminster City Hall, Cardinal Place in Victoria and the newly created New Street Square complex in Midtown.  

Through its development programme Land Securities is creating attractive and innovative new offices and retail destinations that transform their surroundings. On site now in London, 'One New Change' is revitalising the area surrounding St Paul's cathedral while in Cardiff the retail offer and amenities of the city are being dramatically enhanced with the St David's scheme. 

 

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