Great Capital Partnership, the central London joint venture between Great Portland Estates and Liberty International has agreed a new £225m debt facility.

In spite of fresh problems in the financial markets and a renewal of the gloom surrounding property, Great Capital, has an investment property portfolio worth around £650m, has raised external finance for the first time.

The non-recourse facility matures in 2013 and has an interest rate margin 75-115 basis points depending on loan-to-value and interest to income covenants.

Bank liquidity issues

The loan has been underwritten by three banks; Eurohypo, HSBC and Lloyds TSB. Continued uncertainty over liquidity in the banking markets means that banks are increasingly clubbing together in this manner to provide loans of more than £50m.

Great Capital said that following the £360m property swap completed with the Crown Estate in February, the loan would be used to undertake asset management and development opportunities that had arisen.

Timon Drakesmith, Great Portland’s finance director, said: ‘Great Capital has plenty of growth potential and despite the difficulties in the credit markets this deal demonstrates that debt finance is available at a sensible cost for well located property portfolios.'