Two of our joint ventures are financed by securitisations: Broadgate, Meadowhall.
Securitisations provide long-term debt based on the cash flows generated from specific assets or pools of assets. These bonds are rated. The principal is repaid quarterly with the balance outstanding reducing to approximately 20% - 30% of the original amount raised by the final maturity.
The securitisations have no loan to value covenants. The principal financial covenant is that income covers scheduled amortisation (debt repayment), and interest.
As at 5-Oct-23, the Broadgate securitisation had £1,097 million of securitised bonds outstanding with a weighted average maturity of 7.4 years and a weighted average interest rate of 4.93% supported by the cashflows from certain parts of the Broadgate Estate in the City of London. For more information see Broadgate Financing PLC.
As at 12-Oct-23, the Meadowhall securitisation had £454million of securitised bonds outstanding with a weighted average maturity of 6.1 years and weighted average interest rate of 5.01% supported by the cashflow of the Meadowhall shopping centre. For more information see Meadowhall Finance PLC.
For more detailed information on these securitisations, see: