TIDMDLN
RNS Number : 7050R
Derwent London PLC
31 October 2019
31 October 2019
DERWENT LONDON FIRST UK REIT TO SIGN
GREEN REVOLVING CREDIT FACILITY
Derwent London ("Derwent"), the largest London-focused Real
Estate Investment Trust ("REIT"), has agreed and signed a new
five-year GBP450 million revolving credit facility ("RCF") from
HSBC UK, Barclays and NatWest.
The financing includes a 'green' tranche of GBP300 million,
making it the first revolving credit facility provided to a UK REIT
that meets the LMA Green Loan Principles ("Green Loan
Principles").
The green tranche is available to fund activities that satisfy
the criteria set out in Derwent's newly established 'Green Finance
Framework' (the "Framework"). This describes the Group's
sustainability objectives and outlines how Derwent intends to fund
projects that will deliver first class working, amenity and outdoor
spaces, improved energy efficiency and reduced consumption of
natural resources. These include the development or refurbishment
of commercial and residential buildings such as 80 Charlotte Street
W1 and Soho Place W1 that target and receive minimum third-party
verified green building certification, resulting in measurable
improvements and positive environmental impacts. The Framework has
been externally reviewed to ensure compliance with the Green Loan
Principles.
Derwent London will be required to publish an independently
verified report annually confirming that the green loans and the
Framework continue to satisfy the requirements of the Green Loan
Principles. Derwent London will also provide qualitative and
quantitative environmental performance reporting of eligible
projects in its annual Responsibility Report.
Paul Williams, Chief Executive of Derwent London, said:
"Sustainability is fundamental to our business at Derwent London,
and it helps drive the creation of some of London's most innovative
office space. In the last five years we have invested over GBP750
million and this facility will support the next generation of
Derwent's buildings while recognising our social and environmental
obligations to all our stakeholders."
Damian Wisniewski, Chief Financial Officer of Derwent London,
stated: "Linking part of our financing to our projects' green
credentials is an important step towards understanding how we can
help reduce our impact upon climate change. This new five-year
facility will also increase our weighted average debt
maturity."
David Stephens, HSBC UK's Head of Corporate Real Estate, London,
added: "HSBC UK are delighted to act as the joint mandated lead
arranger, facility agent and the green loan coordinator for this
facility. Derwent has an established and proven track record in
developing sustainable buildings and this is core to the business's
strategy. This funding demonstrates the growing demand for green
financing and the continued focus on sustainability across the real
estate sector. The funding is a further example of our commitment
and dedication to the green loan market, which we are determined to
support and develop."
Natalya Tueva, HSBC UK's Director of Sustainable Finance,
explained: "According to the International Energy Agency, buildings
consume 36 per cent of the world's energy and contribute up to 40
per cent of greenhouse gas emissions. Our financing will support
Derwent's commitment to maximising positive social and
environmental impacts through continuous improvement and
responsible design, delivery and operation. HSBC is committed to
helping businesses transition to a lower carbon economy having a
public commitment to provide $100bn of sustainable financing and
investment by 2025."
Dennis Watson, Head of Real Estate at Barclays Corporate
Banking, said: "Derwent's focus on design and sustainability is in
line with our view on how good real estate should be managed, and
we have built a strong relationship with the company over many
years. Providing this facility will help Derwent deliver their
strategy, and the loan structure will reward the sustainable
activities. Our Barclays' Green Product Framework is a great
example of our commitment to providing more sustainable and
innovative lending solutions to our clients. We're confident that
this will be the first of many facilities we'll be able to provide
that meet the Green Loan Principles and help accelerate the
transition to a greener economy."
Commenting on the transaction, Charlie Foster, Managing Director
Large Corporate Commercial Real Estate at NatWest added: "We are
proud to continue our support of Derwent in providing the first
Green RCF to a UK REIT. This transaction emphasises NatWest's
commitment to supporting sustainably financed projects across all
sectors, with an increasing focus on real estate highlighted by
this transaction."
For further information, please contact:
Derwent London Paul Williams, Chief Executive
Tel: +44 (0)20 7659 3000 Damian Wisniewski, Chief Financial
Officer
John Davies, Head of Sustainability
Jay Joshi, Treasurer
Brunswick Group Nina Coad
Tel: +44 (0)20 7404 5959 Emily Trapnell
Notes to editors
LMA Green Loan Principles were drawn up by the Loan Market
Association (LMA) and Asia Pacific Loan Market Association (APLMA)
in December 2018, with the support of the International Capital
Market Association (ICMA).
Derwent London plc
Derwent London plc owns 84 buildings in a commercial real estate
portfolio predominantly in central London valued at GBP5.4 billion
(including joint ventures) as at 30 June 2019, making it the
largest London-focused real estate investment trust (REIT).
Our experienced team has a long track record of creating value
throughout the property cycle by regenerating our buildings via
development or refurbishment, effective asset management and
capital recycling. We typically acquire central London properties
off-market with low capital values and modest rents in improving
locations, most of which are either in the West End or the Tech
Belt. We capitalise on the unique qualities of each of our
properties - taking a fresh approach to the regeneration of every
building with a focus on anticipating tenant requirements and an
emphasis on design.
Reflecting and supporting our long-term success, the business
has a strong balance sheet with modest leverage, a robust income
stream and flexible financing.
As part of our commitment to lead the industry in mitigating
climate change, in October 2019, Derwent London became the first UK
REIT to sign a Green Revolving Credit Facility. At the same time,
we also launched our Green Finance Framework and signed the Better
Buildings Partnership's climate change commitment.
Landmark schemes in our 5.7 million sq ft portfolio include
Brunel Building W2, White Collar Factory EC1, Angel Building EC1,
1-2 Stephen Street W1, Horseferry House SW1 and Tea Building
E1.
In 2019 to date, the Group has won EG Offices Company of the
Year, the CoStar West End Deal of the Year for Brunel Building and
Westminster Business Council's Best Achievement in Sustainability
award. In 2013 the Company launched a voluntary Community Fund and
has to date supported 89 community projects in Fitzrovia and the
Tech Belt.
The Company is a public limited company, which is listed on the
London Stock Exchange and incorporated and domiciled in the UK. The
address of its registered office is 25 Savile Row, London, W1S
2ER.
For further information see www.derwentlondon.com or follow us
on Twitter at @derwentlondon
HSBC UK
HSBC UK serves around 14.5 million customers across the UK,
supported by 32,000 colleagues. HSBC UK offers a complete range of
retail banking and wealth management to personal and private
banking customers, as well as commercial banking for small to
medium businesses and large corporates.
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. HSBC serves customers worldwide from
offices in 65 countries and territories in our geographical
regions: Europe, Asia, North America, Latin America, and Middle
East and North Africa. With assets of US$2,751bn at 30 June 2019,
HSBC is one of the world's largest banking and financial services
organisations.
Twitter: @HSBC_UK/@HSBCUKBusiness
For the latest news and updates, visit the HSBC UK newsroom:
https://www.about.hsbc.co.uk/news-and-media
Barclays
Barclays is a transatlantic consumer and wholesale bank offering
products and services across personal, corporate and investment
banking, credit cards and wealth management, with a strong presence
in our two home markets of the UK and the US.
With over 325 years of history and expertise in banking,
Barclays operates in over 40 countries and employs 82,000 people.
Barclays moves, lends, invests and protects money for customers and
clients worldwide.
For further information about Barclays, please visit our website
barclays.com
NatWest
NatWest serves customers in England and Wales, supporting them
with their personal, private, and business banking needs. NatWest
helps customers at all stages in their lives, from opening student
accounts, to buying their first home, setting up a business, and
saving for retirement.
Alongside a wide range of banking services, NatWest offers
businesses specialist sector knowledge in areas such as sustainable
energy, commercial property and technology, as well as access to
specialist entrepreneurial support.
NatWest has been running MoneySense, an impartial financial
education programme for 5-18 year-olds, for more than 25 years.
Forward-looking statements
This document contains certain forward-looking statements about
the future outlook of Derwent London. By their nature, any
statements about future outlook involve risk and uncertainty
because they relate to events and depend on circumstances that may
or may not occur in the future. Actual results, performance or
outcomes may differ materially from any results, performance or
outcomes expressed or implied by such forward-looking
statements.
No representation or warranty is given in relation to any
forward-looking statements made by Derwent London, including as to
their completeness or accuracy. Derwent London does not undertake
to update any forward-looking statements whether as a result of new
information, future events or otherwise. Nothing in this
announcement should be construed as a profit forecast.
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END
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