Development Securities PLC, the leading property development and investment company, announces today that it has arranged a new £22.5 million, fixed rate, 14-year debt facility with Aviva Commercial Finance Limited. The facility is secured on five properties, four of which were acquired with the proceeds of the £100 million Placing and Rights Issue received in August 2010. The facility carries an interest rate of 5.48%.
Graham Prothero, Finance Director, commented:
"The new debt facility with Aviva continues our tactic of acquiring assets with the speed and flexibility of equity, and subsequently refinancing with long term debt. We are pleased to secure this facility at a keen rate, and indeed to extend our excellent long standing relationship with Aviva."
Kevin Sale, Commercial Finance Director at Aviva, commented:
"We're delighted to provide this additional facility to assist Development Securities PLC in growing their portfolio. This builds on our long term relationship with Development Securities PLC and we look forward to continuing to work closely with them."
This announcement follows closely the recent news that Clydesdale & Yorkshire Bank Corporate and Structured Finance has provided a £23.75 million funding package for the Manchester Evening News Arena, owned jointly by Development Securities PLC and Patron Capital Partners. This new facility replaces half of the original £47.5 million facility provided by Lloyds Banking Group in April 2010 on the same terms. Together with the Aviva facility, it further demonstrates the Company's strength in raising finance in a market where debt for real estate remains tightly constrained.