Manchester’s Ask Developments has refinanced £42m of Co-operative Banking Group debt that was due to mature in October.
In a rare tonic for the regional development market, the Manchester developer is believed to have agreed an extension to its debt package with the bank, which was agreed at the time of Ask’s management buyout in October 2009.
Ask has paid down £50m of the £92m Co-op facilities that were negotiated for a term of three years at the bottom of the market, and is now thought to have extended the arrangement for another three years.
The debt extension would be seen as a vote of confidence in Manchester development from Co-op, particularly as it has an £800m regeneration project of its own in north Manchester, NoMa.
An Ask statement said: “Manchester-based Ask Property Developments has concluded a long-term refinancing package with its banking partner The Co-operative Bank intended to ensure that the company can fully support its forward business plan and sustain, develop and grow its impressive portfolio of development sites and schemes across the Manchester City Region.
“Since the conclusion of the company’s MBO in October 2009, supported by The Co-operative Bank, the company has repaid £50m of project debt in line with expectations as it has successfully completed substantial projects for Greater Manchester Police at Central Park and Standard Life at Knowsley Place, Bury, delivering in excess of 435,000 sq ft of floorspace unlocking an investment value of £110m.”