Henderson retail funds land fresh debt

Henderson Global Investors closed refinancings for two of its funds last week. Morgan Stanley and pbb Deutsche Pfandbriefbank are providing €100m for three of the Herald European retail fund’s 18 assets.

The loans are secured against the Metropolis Shopping Centre in Cosenza in Italy, and two German assets: City Centre in Hanau, near Frankfurt and Shopping Cité in Baden-Baden.

In the UK, RBS lent £100m, secured on UK Shopping Centre Fund assets, replacing Bayern LB and Lloyds maturing loans. The all-in cost is just over 3.5%.

For Herald, Morgan Stanley lent against the Italian asset and one German shopping centre, in two facilities totalling just over €60m. Deutsche Pfandbriefbank issued debt against the other German asset. Both were original lenders against the properties.

The longest maturity is for four years. Overall, the blended margin equates to 1.58%, spread fairly evenly across all the assets, despite sparse liquidity in Italy.

Henderson head of treasury Colin Throssell said: “We market-tested it [and found] sporadic appetite for Italian assets.”

Herald fund manager Carl White added: “We’ve been involved with Morgan Stanley for some time in Italy and there is a commitment to carry out a capex plan for the shopping centre which amounts to €6m.”

The 25,806m2 centre has 82 units and has been fully let for the past five years. “We’re looking for at least three years’ flexibility on the refinancings, taking loan facilities beyond the fund’s end date so we can decide with the [40] investors what the next stage is,” said White.