Manchester-based developer and investor Bruntwood has completed a £440m commercial mortgage-backed securitisation (CMBS), enabling an expansion of its portfolio across the north.
The deal, completed this week, leaves around £200m-worth of Bruntwood's £900m commercial portfolio mortgage-free.
Bruntwood’s North of England office portfolio is spread across Leeds, Liverpool and Manchester, where it owns around 20% of the total office space.
Its properties are valued close to £900m and the deal leaves property valued in excess of £200m mortgage free. The move leaves the company in a position to embark on new projects.
Bruntwood’s Chief Executive, Chris Oglesby said: ‘We have been aware of the growth of the CMBS market for some time, but we wanted to ensure it would afford us the flexibility we require.
‘Working with the Royal Bank of Scotland and the rating agencies, we have put together a structure which provides both the protection that bond-holders require and the flexibility that Bruntwood requires to continue to run a successful customer service business.’
Knight Frank advised Bruntwood on valuations.