Last checked at 9 Sep 2011 12:57
9 September 2011
AVIVA INVESTORS & SEGRO ANNOUNCE AIRPORT PROPERTY PARTNERSHIP REFINANCING
London: Aviva Investors and SEGRO are pleased to announce the successful refinancing of the Airport Property Partnership (APP) portfolio.
The partnership has agreed to a five year refinancing package to replace maturing debt facilities with HSBC, RBS, Barclays and Lloyds which were due to expire in March 2012. The refinancing package of £400 million senior debt, with £320m drawn, was provided by a banking consortium, consisting of HSBC, Barclays Corporate, Royal Bank of Scotland, BNP Paribas, Credit Agricole CIB and Santander. The LTV ratio of the fund is 46% and an all in fixed funding rate on drawn debt of circa 4%.
Karen Fox, Fund Manager at Aviva Investors commented, "The replacement of the maturing debt facilities reflects not only the quality and strength of the underlying assets but also illustrates the commitment of the consortium to the current and future success of the Airport Property Partnership."
Alan Holland, SEGRO Joint Ventures Director said, "We are delighted to have secured five year funding with a strong group of banks. We now have a secure funding platform in place and working with our partners Aviva Investors, we will seek to drive even greater value from the joint venture. In particular, we will continue to exploit opportunities from the attractive Heathrow market."
The APP is a joint venture formed between SEGRO and Aviva Investors in June 2010 and forms part of the £1 billion portfolio which SEGRO manages at Heathrow. SEGRO is the asset manager to the fund while Aviva Investors is the fund manager. The joint venture includes 23 direct property assets, 4 development sites and 3 indirect investments with 81% located at London Heathrow Airport.
Ends
For more information contact:
Laura Cocker, Media Relations Manager, Aviva Investors
+44 (0)20 7809 8452
Alex Shorland-Ball, Head of Investor Relations, SEGRO
+44 (0)20 7451 9043
Andrew Pilsworth, Group Treasurer, SEGRO
+44(0)20 7451 9060
Notes to Editors
The Fund is distributed by Aviva Investors Global Services Limited of No.1 Poultry London EC2R 8EJ. This press release is not available for general distribution in, from or into the United Kingdom because the Fund is an unregulated collective investment scheme whose promotion is restricted by sections 238 and 240 of the Financial Services and Markets Act 2000. When distributed in, from or into the United Kingdom, this press release is only intended for persons having professional experience of investing in unregulated schemes, high net worth companies, partnerships, associations or trusts and personnel of any of the foregoing having professional experience of investing in unregulated schemes (each within the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001), persons outside the European Economic Area receiving it electronically, persons outside the United Kingdom receiving it non-electronically and any other persons to whom it may be communicated lawfully. No other person should act or rely on it. Other persons distributing this document in, from or into the United Kingdom must satisfy themselves that it is lawful to do so.
Aviva Investors
Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 16 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £269 billion at 30 June 2011.
Aviva plc
* Aviva is a leading provider of life and pension products in Europe (including the UK) with substantial positions in other markets around the world, making it the world's sixth largest insurance group based on gross worldwide premiums at 31 December 2010. * Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales* of £47.1 billion and funds under management of £402 billion at 31 December 2010.
*Based on 2010 published life and pensions PVNBP on an MCEV basis, total investment sales and general insurance and health net written premiums, including share of associates' premiums.
Aviva Investors Global Services Aviva Investors Global Services Limited, Limited
registered in England No. 1151805. Registered Office: No. 1 Poultry, London No. 1 Poultry, London EC2R 8EJ EC2R 8EJ. Authorised and regulated in the UK
by the Financial Services Authority and a Phone +44 (0)20 7809 6000 member of the Investment Management Association. Fax +44 (0)20 7489 7940 Contact us at Aviva Investors Global Web www.avivainvestors.com Services Limited, No. 1 Poultry, London EC2R 8EJ. (11/08061)
Email info@avivainvestors.com
Telephone calls may be recorded for training and monitoring purposes.
About SEGRO
SEGRO is Europe's leading provider of flexible business space. The Group is a Real Estate Investment Trust (REIT), listed on the London Stock Exchange. SEGRO's portfolio comprises £5.4 billion of predominantly industrial and warehouse assets concentrated in and around major business centres and transportation hubs such as ports, airports and motorway intersections. The Group serves over 1,600 customers spread across many geographies and different industry sectors. It has 5.5 million sq m of built space and a passing rent roll of £340 million (as at 30 June 2011).
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