Land Securities repays £1.5bn debt

22nd Sep 2009 15:40

Property giant Land Securities is repaying £1.5bn of its debt and will repay further facilities during the calendar year but said it still has "financial firepower" to take advantage of market opportunities.The group said the decision allows Land Securities to return to a normal operating environment in its security group debt structure and positions the business strongly.After paying back the £1.5bn it is estimated that the Loan to Value in its debt structure will be approximately 59% based on March 2009 valuations. "We said at the time of our Rights Issue that we would continue to actively manage our balance sheet and repay debt when appropriate," said chief executive Francis Salway. "Our recent activity in executing sales, raising new debt facilities against assets and managing costs has reinforced our confidence in our forecasts and means we have taken this step earlier than our internal plans had assumed." "Today's decision strengthens our hand in positioning the business in a secure and strong state ready to take advantage of future opportunities."