Refinancing deal boost for region's largest mall

THE North East's biggest shopping centre is set to make more investments to boost the shopping and leisure experience for visitors after sealing a £70m refinancing deal.

- COREENA FORD

The Metrocentre in Gateshead

Metrocentre has announced the eight-figure deal with Lloyds, which is due to complete tomorrow, saying the new facility will allow it “to continue to enhance the centre's increasingly diverse offer”.

Centre bosses said they will now look at new ways to invest across the Gateshead leisure and shopping destination. It said recent trends have proven the importance of public transport for its millions of annual visitors, triggering a pledge to invest £940,000 into improving the train station.

It said the refinancing will lower its cost of capital and provide additional headroom for capital expenditure, as well as working capital requirements so it can build on its successful investment programme to continue to enhance the value of Metrocentre.

The proposed deal refinances the £20m facility provided by HSBC, and repays the £25m New Money notes originally provided for capital expenditure purposes. It comprises a £50m term loan and a £20m revolving credit facility for an initial two-year term, with an option to extend by two further one-year periods at the company's request.