The balance sheet of the UK’s largest business park fund has been restructured and the fund extended for a further five years.
As part of the restructuring, PRUPIM, one of four investors in Arlington Business Parks Partnership, has sold its interest for £48m to two of the others, believed to be Goodman and Legal & General Property. The fund’s other investor is the Abu Dhabi Investment Authority.
Goodman and LGP are now thought to own around 80% of the vehicle. ABPP has secured a new five-year, £350m banking facility with existing lenders Eurohypo and RBS and new lender Lloyds.
The fund also has just under £270m of remaining debt securitised in the Epic Opera (Arlington) CMBS, whose loan has been extended to July 2014.
Eurohypo’s commitment is thought to be one of two loans recently approved by the German bank’s parent, Commerzbank, which put Eurohypo’s lending on hold last November.
ABPP’s gross value is £1.1bn. It owns 26 parks and assets with development potential, including at Glasgow, Oxford and Uxbridge.