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UK property group Hammerson has agreed a £360m credit facility as it seeks to reduce its debt financing costs and lock in historically low borrowing costs.
The FTSE 100 group said it had signed a five-year revolving credit facility deal with a syndicate of 14 banks that could be extended to seven years. The credit facility has a margin of 90 basis points over Libor and marks a 60bps reduction over an existing £175m credit facility.
Hammerson, which focuses on retail property around Europe and has a £9bn portfolio, suffered a profit drop of over a half last year on the back of the falling value of its shopping centres and retail parks.
Last year, the company signed a £420m credit deal which also helped reduce its borrowing costs. The landlord has been refinancing debts build up during its acquisition of Birmingham’s Grand Central shopping centre in 2015.
Timon Drakesmith, chief financial officer said:
This new credit facility is the latest milestone in our journey to reduce Hammerson’s cost of debt by refinancing in an attractive funding environment.
Japanese bank MUFG is coordinator of the loan facility with Deutsche Bank as the facility’s agent.