South: Shoosmiths advises McKay on £175m refinancing

National law firm Shoosmiths has provided real estate advice to McKay Securities plc on a refinancing package which has boosted the group’s loan portfolio from £155 million to £175m. McKay is the only Real Estate Investment Trust (REIT) specialising entirely in office and industrial markets in the South East and London.

Real estate partner Alan Corcoran, associate George Panteli and trainee solicitor Sophie Boswell coordinated a cross-office team advising McKay in relation to the property elements of the transaction which included certifying title for 26 properties for three separate lenders.

Shoosmiths has acted for McKay on a number of transactions – most recently on the acquisition of an established £10.7m distribution facility in Theale, Berkshire.

The new loan from Aviva is a £55m facility with a 15-year fixed-term rate of 4.13%. This replaces a bank facility of £47m due to expire in September 2016.

Facilities with other existing lending banks have been increased by £12m to £120m, of which new facilities account for £85m on five-year terms.

Under the new refinancing agreement, McKay has maintained relationships with three of the group’s four lending banks and introduced Aviva Commercial Finance as a new lender.

Shoosmiths' real estate group is one of the largest in the UK, spread over eight offices from Scotland to the South Coast of England. The group is made up of teams advising on real estate, construction, planning, property litigation, and environmental law.