Eurohypo takes the lead on new loan to Tesco BL

Tesco BL Holdings, a 10-yearold joint venture between British Land and Tesco, has refinanced a £315m loan that was due to mature in December 2009. WestImmo led the five banks that provided the maturing loan, but lost out on the lead role in the refinancing to Eurohypo. Eurohypo has taken a £100mparticipation in the new five-year loan, leading a club of banks. The other lenders are Helaba, which took £70m; Calyon Crédit Agricole CIB; Nationwide; and Santander Corporate Banking.

The loan is secured on a£500m portfolio with two retail parks, two shopping centres (in Londonderry and Peterborough) and five Tesco superstores. The Tesco BL deal is one of a number of large refinancing deals that closed at the end of 2009 and also included the refinancing of Bicester Village and of Telereal Trillium. The £525m refinancing of Liberty International’s Lakeside shopping centre is due to close next week. WestImmo and Eurohypo are the joint arrangers of the new seven-year facility. Other banks involved include Deka, Santander and Lloyds.