Club of four in £600m Canary Wharf refinance

A club of four banks has agreed to refinance the entire 750,000 sq ft retail, leisure and parking portfolio of the Canary Wharf Group, Real Estate Capital can reveal. Lloyds Banking Group, Wells Fargo, Barclays and HSBC have jointly agreed to provide a facility of £600m. The five-year loan has been agreed at a margin […]

A club of four banks has agreed to refinance the entire 750,000 sq ft retail, leisure and parking portfolio of the Canary Wharf Group, Real Estate Capital can reveal.

Lloyds Banking Group, Wells Fargo, Barclays and HSBC have jointly agreed to provide a facility of £600m. The five-year loan has been agreed at a margin of close to 150 basis points. The retail and leisure assets at Canary Wharf are valued at £1.045bn, reflecting a loan-to-value of 57.4%.

The deal concludes a process kicked off last summer to refinance a £350m facility with Lloyds that was due to expire in December 2014. During the duration of the process the banking market has become more competitive and Canary Wharf Group is likely to have seen the terms available to it improve markedly.

The group has added a large amount of value to the retail portfolio at the London Docklands estate in recent years and the facility is also secured against the development of the forthcoming Crossrail station that is due to complete in May 2015 that will include an additional 115,000 sq ft of retail and leisure.

The finance is split between a £360m fixed loan and a £240m revolving credit facility, of which £40m will be available upon completion of the Crossrail station.

 

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