Debentures
General Information
The Company has five tranches of debenture outstanding:
- £98 million 6.75% First Mortgage Debenture Bonds due 2011
- £200 million 6.75% First Mortgage Debenture Bonds due 2020
- £310 million 5.357% First Mortgage Debenture Bonds due 2028
- £330 million 5.264% First Mortgage Debenture Bonds due 2035
- £110 million 5.0055% First Mortgage Amortising Debenture Bonds due 2035
The Company is required to deliver to the trustee, each year, a valuation of, and a report by the auditors on the net annual income from, the charged properties. If such valuation shows the aggregate value of the charged properties is more than one and two-thirds times the nominal value of Bonds outstanding and that the net annual income is not less than the gross annual interest on the Bonds, then the Company may withdraw mortgaged properties provided that these tests continue to be met. If such valuation shows that the aggregate value of the charged properties is less than one and one-half times the nominal value of Bonds outstanding or that the net annual income is less than the gross annual interest on the Bonds, the Company is obliged to provide additional security so that these tests are met. The company has the right to substitute properties of equal value and income in the security pool. The debentures benefit from a combined collateral pool which was valued by the Company’s valuers Knight Frank at £1,353,740,000 at 30 September 2009 with a net annual income, certified by the auditors, of £96,129,705. In addition cash collateral of £214 million is held. The asset cover ratio is 1.501 times and income cover ratio 1.618 times (reflecting the properties and cash collateral).
Visit the reports page to view copies of the debenture prospectuses and details of the collateral pool at earlier dates>
Information on collateral pool
The debentures benefit from a combined collateral pool valued at £1,353,740,000 at 30 September 2009 with a net annual income of £96,129,705. The assets cover ratio at 30 September 2009 is 1.501 times and income cover ratio 1.618 times. The pool has 26 properties and 224 tenants. The geographic and sector diversity of the collateral pool by market value and net annual income is shown below:
Geographic Diversity: | Area | Market Value | Rent Diversity |
|---|
| City | 0.9% | 1.3% |
| East Anglia | 5.3% | 4.9% |
| East Midlands | 7.5% | 7.7% |
| Greater London | 1.8% | 1.8% |
| North | 13.3% | 12.3% |
| North West | 10.7% | 10.5% |
| Scotland | 5.1% | 5.2% |
| South East | 15.0% | 17.5% |
| South West | 6.0% | 5.7% |
| West End | 30.5% | 29.2% |
| Yorks & Humberside | 3.9% | 3.9% |
| Area | Market Value | Rent Diversity |
|---|
| City Offices | 0.9% | 1.3% |
| Retail Warehouses | 62.2% | 59.9% |
| Shopping Centres | 6.5% | 9.6% |
| West End Offices | 30.5% | 29.2% |
The top 10 tenants contribute 41.77% to the pool’s income (by gross annual income) as follows:
1 Sec of State for Communities 11.56%
2 JP Morgan Chase Bank, NA 5.62%
3 Homebase Limited 5.44%
4 Asda Stores Limited 4.56%
5 DSG Retail Limited 3.35%
6 Marks & Spencer PLC 2.93%
7 Next Group PLC 2.51%
8 JJB Sports PLC 1.86%
9 Comet Group PLC 2.02%
10 Hachette UK Ltd 1.93%
In addition cash collateral of £214 million is charged.
The following properties are charged at the debenture pool.
Eastgate Centre, Basildon
Weston Lock Retail Park, Bath
Tollgate Centre, Colchester
St. James Retail Park, Dumbarton
Cuckoo Bridge Retail Park, Dumfries
Eldon House, 2-3 Eldon Street, London
Euston Tower, Euston Road, London
1, 4 and 7 Triton Square, Euston Road, London
Westside Retail Park, Leeds
St. James Retail Park, Northampton
Teesside Retail Park, Stockton
Westgate Retail Park, Wakefield
Teesside Park Phase 2, Stockton
Orbital Shopping Park, Swindon
The Beehive Centre, Cambridge
Homebase, Harrow Weald
Homebase, Walton on Thames
Springfield Retail Park, Elgin
Homebase, Richmond
338 Euston Road, London
Homebase, Camberley
350 Euston Road, London
Denton Crown Point Retail Park, Denton
Orpington Nugent Retail Park, Orpington
Oldham Centre Retail Park, Oldham
Giltbrook Retail Park, Giltbrook
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