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Real Estate

Great Portland strengthens financial position with debt issue

The issue increases available liquidity to more than £500mln

Great Portland Estates PLC (LON:GPOR) the central London property owner, has raised £150mln of new debt through a US placing with six investors, two of which were new.

The notes run between 12 and 15 years with a weighted average fixed-rate coupon of 2.77%.

Great Portland said the relatively long-dated nature of the notes will significantly extend its average debt maturity and increase available liquidity to more than £500mln.

The group's loans to value (LTV) figure as at June 30, 2020, was 15%.

In a statement, Martin Leighton, Great Portland's director of Corporate Finance, said: "We are very pleased with this substantial new debt issue which locks in low cost, long-dated unsecured debt at a time of economic uncertainty and further enhances our significant financial capacity for growth should opportunities emerge.”

Last month, the FTSE 250-listed group said it had received 69% of rent due for the June quarter with support for tenants under pressure from coronavirus being assessed on a case-by-case basis.

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