FOR IMMEDIATE RELEASE
13 May 2014
LONDON & ASSOCIATED PROPERTIES PLC:
INTERIM MANAGEMENT STATEMENT
London & Associated Properties PLC (“LAP” or “the Company”), the specialist
retail focused property investor, today releases its Interim Management
Statement for the period from 19 November 2013 to 12 May 2014.
LAP also released its Annual Report & Accounts for the year ended 31 December
2013 to shareholders on 24 April 2014.
On 2 May, LAP agreed a new credit facility for £40.1 million with Royal Bank of
Scotland. LAP used £4.1 million from its cash reserves to pay down the loan
from £44.2 million as drawn on the previous credit facility.
In the run up to agreeing this new facility, the Company also terminated the
last of its long dated interest rate swaps secured against this facility in a
series of separate transactions. The combined costs of breaking these swaps was
£10.7 million. This transaction will reduce the ongoing interest costs
This has enabled LAP to approach alternative lenders to refinance with a much
stronger balance sheet. Advised by Alvarez and Marsal, we have received an
encouraging number of offers from lenders. We have now chosen a senior debt
lender and a mezzanine lender with whom to progress, and are now working on the
documentation. I will update shareholders on progress in due course.
At Orchard Square, we have received a number of offers from retailers on the
vacant former USC unit which fronts on to Fargate. We intend to split the unit
to maximise returns and most of the ground floor is now under offer to a
national retailer. There are verbal offers on the remainder of the space and
our agents are working up detailed term sheets on our behalf. Again, we will
update shareholders in due course.
The property sector continues to improve and the funding market has become more
liquid over the last six months. This should benefit our business, which is
still concentrated in quality assets in strong locations. We therefore look to
the future with considerable confidence.
London& Associated Properties PLC Tel: 020 7415 5000
John Heller, Chief Executive
Robert Corry, Finance Director
Baron Phillips Associates Tel: 020 7920 3161