The refinancing, also structured by Morgan Stanley, will increase the total amount of debt secured against the estate from euro 3.2 billion ($4.1 billion) to euro 3.6 billion ($4.6 billion). RBS, in turn, will sell the bonds. CWG company secretary John Garwood says the refinancing would not reduce the cost of secured debt because of penalties for early redemption. "But it gives the capacity to sell or refinance the buildings moved out of the first securitization pool," he adds.
"The structuring of CWII is much more flexible than the first securitization and allows the substitution of properties," Garwood states. The latest issue will consist of floating rather than fixed-rate bonds, including new bonds on the One Canada Square tower.
In December, CWG officials noted that the firm intended to pursue "selected sales and refinancings." Last month it sold 15 Westferry Circus, E14, to Irish investors for euro 198 million ($255 million) and 20 Canada Square, E14, to Brascan and Barclays Capital for euro 495 million ($638 million). This latest news is expected to pave the way for further asset sales from the Docklands portfolio.
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