TILFEN LAND CAPITALISES ON POSITION OF STRENGTH WITH NEW BANKING FACILITIES TO AID EXPANSION
Tilfen Land has secured a £40 million debt facility with the Royal Bank of Scotland (RBS).
The facility - which is available for three years - will be used together with the company’s significant cash reserves to provide the business with the scope to exploit important opportunities in a buyer’s market.
The announcement confirms sustained confidence in the Thames Gateway property developer and is a strategic move designed to provide access to additional funds that will enable the business to take advantage of current market conditions and secure the best deals as opportunities arise.
“No one is going to pretend that trading conditions in the sector are anything other than challenging but, unlike most of our competitors, we built up cash reserves when the going was good,” says finance director, Peter Runting.
“Tilfen Land is a solid, cash rich and largely debt free business. Clearly this puts us in a very strong position in the current economic climate and it makes eminent business sense to ensure we have the right funding in place to enable us to make the right acquisitions at the right price at the right time.
“There is no doubt there will be deals coming to the market that we can take advantage of and this, coupled with the confidence RBS is demonstrating in our business and management, presents us with opportunities to build the business through challenging times and beyond.”
Tilfen Land, which has a major land holding across the London boroughs of Bexley and Greenwich, will use the funding to acquire industrial/warehouse investments capable of generating future revenue streams.
The company will also look to its Thames Gateway base to source other opportunities that both complement and enhance the strength of its existing portfolio.
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May 11, 2009
Press enquiries to David Leck at Tilfen Land on 01322 528580/07710 326256.
NOTES TO EDITORS
1. Tilfen Land currently has an investment portfolio of over 2 million square feet generating rental income in excess of £6.1million. Void levels at the end of December 2008 stood at 5.9% of rental income, significantly below the average for the sector.
2. Tilfen Land’s White Hart Triangle development - a joint venture with Greenwich Council and the London Development Agency – has outline consent for one million sq ft of B1, B2 and B8 accommodation across 49.2 acres of net developable land. Tilfen Land is currently nearing completion of its largest ever single development transaction on the site which is pre-let to Iron Mountain – the leading global provider of comprehensive records management, data protection and information solutions.