<
p>HSBC advanced a bridging loan worth €225 million (£176 million approx) to a property firm.
Intu Properties plc has revealed that it has exchanged contracts with an entity indirectly owned by a fund managed by
Orion Capital Managers in order to buy out the Puerto Venecia shopping centre and retail park in Spain. The cost of the Zaragoza-based retail centre totalled at €451 million (approx. £452 million).
A staggering €225 million bridging loan was lent to Intu from HSBC, which can be exchanged for a five year loan secured against the property. The cost of debt is said to be around 3.5 per cent.
Commenting on the news, David Fischel, Chief Executive of Intu, said: “The acquisition of the Puerto Venecia shopping centre following last year’s successful acquisition of Parque Principado, Oviedo, is another great addition for the Group.
“The transaction substantially accelerates our activities in Spain, which is a country where we see major opportunities for the type of genuinely regional destination centre in which the Group specialises, like intu Trafford Centre in the UK.
“Puerto Venecia represents such an asset, with an attractive combination of retail, restaurants and leisure. The centre is seeing strong growth in footfall and retailer sales from key names and provides an excellent template for the future development of sites we have under option, such as in Malaga where we expect to move the project forward significantly in 2015.”
HSBC has advanced a bridging loan worth €225 million (£176 million approx) to a property firm….
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