Securing the right finance

The Group’s financing strategy is predominantly to hold each property in a separate subsidiary and to finance the property on a non-recourse basis to the other companies in the Group. This means we have 52 loans from 21 banks across Europe, and, as the majority of debt has a duration of 5 to 7 years, we refinance around 20% of it each year. As a consequence, we have been able to lock in low interest rates in recent years, which has brought down our average cost of debt.

Acquiring the right properties

“In aggregate we financed or refinanced £222.1 million of loans at a weighted average of 1.63%”

Actively managing

Our objective in 2017 was to maintain a low cost of debt and a high level of fixed-rate debt taken out at historically low interest rate levels. In aggregate we financed or refinanced £222.1 million of loans at a weighted average of 1.63%. Over half of the financing was for the new acquisitions of Metropolis (£82.3 million), Gotic Haus (£21.1 million) Project Jamaica (£13.0 million) and Network Perlach (£9.5 million). At 31 December 2017, the Group’s weighted average cost of debt was 2.51%, the lowest in the Group’s history.

Delivering value

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