Vincent Tchenguiz has sealed a £760m long term debt package with Merrill Lynch and HBOS in a sign of the major shift away from short-term financing since the credit crisis began. Daily Telegraph
In the past, Tchenguiz has usually funded investments through securitisation, but with the appetite for such structured debt instruments having disappeared since the summer, he has been forced to raise money through conventional long-term bank loans.
'This is an exceptional out-turn given current market conditions,' Tchenguiz said. 'These deals represent a major part of our revised plans to enjoy long term security in a new and hostile credit environment.'
The £760m of debt is secured against various property assets and is protected by a number of interest rate and inflation hedges.
His Consensus Business Group – which owns 300,000 UK residential freeholds, £500m of property used by Tesco and £500m that is used by Hilton hotels – plans to continue investing in the residential property market as well as in green technologies.