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British Land : BLND – ups stake in Hercules unit trust

British Land is buying £41m worth and tendering for an additional £35m worth of additional units in the Hercules unit trust at a price equivalent to a 3.8% discount to NAV.

Hercules unit trust owns £1.5bn of retail property spread across 17 retail parks including the Glasgow Fort Shopping Park (pictured). British Land is the property advisor to the trust. BLND will own at least 54% of the unit trust after this deal and so will have to consolidate it within its accounts as a subsidiary.

All of the unit trust’s debt is non-recourse to British Land. After the deal its consolidated LTV will be at most 43% and its actual LTV will be at most 31%.

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