Metrocentre secures £70m refinancing with Lloyds

Martin Healy, chairman of Metrocentre said: “We are delighted to have secured this refinancing, which simplifies our financing structure, reduces our cost of capital, and will support Metrocentre’s value enhancement strategy.

“Value-adding investment in the centre has been an important driver of Metrocentre’s improved operating performance in recent years.

“This refinancing, on more attractive terms, will ensure we can build on this programme to continue to enhance the centre’s increasingly diverse offer, experience, and long-term value.”

Raj Jayaprakash, head of Listed REITs at Lloyds said: “Lloyds is committed to supporting the UK’s retail sector and our £70m refinancing for Metrocentre further strengthens the centre’s financial foundation, supports business growth, and enables continued innovation for a key retail and leisure destination in the North East.”

Chris Geaves, head of asset and development management at Sovereign Centros, added: “Metrocentre continues to go from strength to strength on the back of strong and diversified tenant demand, and this refinancing reinforces our ability to grow the asset.”

Giles Barling, partner, EY Debt Advisory commented: “We are delighted to have been trusted to advise on this important and bespoke refinancing for the Metrocentre and extend our congratulations to our client and Lloyds Bank for concluding the transaction.

“The outcome reflects the strong operating performance improvement delivered in recent years, as well as the strength of Metrocentre as a leading retail and leisure destination.”