8 September 2008
THE LOCAL SHOPPING REIT PLC
("LSR" or the "Company")
THE LOCAL SHOPPING REIT PLC ANNOUNCES
AGREEMENT OF NEW £60 MILLION DEBT FACILITY
The Local Shopping Reit plc (LSE:LSR), a UK real estate investment trust focused on investments in local shopping assets, is pleased to announce that it has restructured one of its existing facilities with HSBC, which will provide it with increased flexibility and enhance its ability to identify and act upon opportunities in the market place.
The new £60 million facility supersedes the existing £75 million facility with HSBC, which was required to be fully drawn by April 2009. The new facility comprises a £25 million term loan and a £35 million revolving credit facility, both expiring in October 2016. The interest rate margin varies depending on the loan to value ratio up to 160 basis points above LIBOR.
As at 5 September 2008, LSR's net debt was £115.5 million at an average interest rate of 5.6%.
Commenting, Mike Riley, Joint Chief Executive, LSR, said:
"Restructuring this loan provides us with greater flexibility in preparation for the opportunities that we expect to arise in the market. We are also very pleased with and encouraged by the continuing support from HSBC in its capacity as our principal bank."
For further information please contact:
The Local Shopping Reit plc
+44 (0)20 7292 0310
Stephanie Highett/Richard Sunderland/Jamie Robertson
+ 44 (0)20 7831 3113
About The Local Shopping REIT
The Local Shopping REIT plc ("LSR") is the first specialist start-up Real Estate Investment Trust ("REIT") to launch in the UK.
Already a major owner of local retail property, the Company is building a portfolio of local shops in urban and suburban areas, investing in neighbourhood and convenience properties throughout the UK. Typical of the portfolio are shops in local shopping parades and neighbourhood venues for convenience or 'top-up' shopping. As at 31 January 2008 the Company's portfolio comprised 651properties, with over 2000 letting units.
For further information on LSR, please visit www.thelocalshoppingreit.co.uk.
For further information on REITS, please visit www.reita.org.