Business Environment has completed the refinancing of twelve of its properties, concluding the largest deal of its kind in the service office sector since before the credit crunch began.
The agreement, worth £110.129m and made with a consortium of banks including Nationwide, Northern Rock Asset Management and Leeds Building Society, provides a five year loan at an average interest rate of 3.02 per cent above the London Interbank Offered Rate.
The arrangement covers 12 of Business Environment’s 14 sites, a total floor space approaching 500,000 square feet. In addition, Business Environment has raised additional funds for refurbishment.
Simon Rusk, finance director at Business Environment, said: “We believe this is the largest agreement of its kind since before the financial crisis. We are hugely proud of this deal, which will allow us to expand and grow the business over the coming years. Given the tough economic backdrop, it’s a sign of confidence in our business and in the serviced office sector.”
Business Environment is unique amongst the largest serviced office providers in that it owns almost all of its properties.