Simmons and A&O take lead roles on £1bn retail centre refinancing
Simmons & Simmons and Allen & Overy (A&O) have advised on a major £1bn refinancing of the Meadowhall Shopping Centre in Sheffield.Simmons banking partner John Davies advised British Land as the UK property investment company put in place a new finance structure that will permit £1.015bn of debt to be issued.
January 24, 2007 at 07:09 PM
2 minute read
Simmons & Simmons and Allen & Overy (A&O) have advised on a major £1bn refinancing of the Meadowhall Shopping Centre in Sheffield.
Simmons banking partner John Davies advised British Land as the UK property investment company put in place a new finance structure that will permit £1.015bn of debt to be issued.
The debt was secured over cashflows from Meadowhall, valued at more than £1.6bn. The previous securitisation structure was relatively complex, but bondholder approval was received to make the package more flexible and provide less of a legal risk.
Following the conversion of British Land to Real Estate Investment Trust status at the beginning of the year, the shopping complex is now held by a newly-established vehicle – the Meadowhall Limited Partnership – which will give the property group more flexibility.
This is the third major securitisation British Land has done in recent years. Simmons and A&O were both involved when the company refinanced the Broadgate Centre and estate for £2.08bn in 2005 and on the refinancing of a portfolio of Sainsbury's properties in 2006.
Simmons does most of the financing work for British Land, although the company regularly instructs SJ Berwin for its property work. A&O securitisation partner Christian Lambie advised joint lead managers, Royal Bank of Scotland, UBS and Morgan Stanley, as well as Morgan Stanley as sole book runner. Addleshaw Goddard partner Peter Hardy advised British Land on real estate issues. Mourant provided Jersey law advice.
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