Legal & General : completes £175m refinancing of existing Arora Group debt

24 October 2016

Legal & General Investment Management Real Assets (LGIM Real Assets) has completed a new loan to the Arora Group, for £175m over 15 years, refinancing existing debt for Arora in the current low interest rate environment.

LGIM Real Assets arranged the transaction for a third party client alongside its annuity fund and the deal is the second financing between Arora Group and LGIM Real Assets.

Steve Boyle, Lending Manager at LGIM Real Assets, commented: 'The fundamentals of this loan are very strong. It is secured against a high quality asset within the Arora Group portfolio. We continue to look across all sectors, both mainstream and alternative, in the UK for equally appealing opportunities across all durations. It remains an exceptional time for borrowers to lock into longer term debt, especially when the lender can offer a fixed rate, avoiding the need for hedging, and the flexibility of substitution rights.

Surinder Arora, Founder and Chairman of the Arora Group, said: 'As a Group, we are always looking to achieve the best value, and work with a range of lenders to ensure the most appropriate financing structures are in place for the Arora Group. On this occasion, Legal & General is again the ideal partner and has secured an excellent rate for the Group, leveraging the current low interest rates, and it has been a real pleasure to work with them.'

ENDS.

For further information and media enquiries regarding Legal & General, please contact:

Faye Walters
PR Manager, LGIM Real Assets
Tel: 020 3124 2823

For further information and media enquiries regarding the Arora Group, please contact:

FTI Consulting
Oli Winton, Eleanor Purdon
Tel: 020 3727 1000

Notes to editors:

LGIM Real Assets

LGIM Real Assets is a division of Legal & General Investment Management (LGIM), one of Europe's largest institutional asset managers and a major global investor. LGIM manages £842bn in assets on behalf of over 3,200 clients (as at 30 December 2015), providing products and solutions spanning all asset classes. LGIM Real Assets, headed up by Bill Hughes, has AUM of £21.1bn (as at 30 June 2016) and is responsible for the division's direct investment capabilities in property and infrastructure. LGIM Real Assets is made up of three specialist divisions, Legal & General Property (LGP), its property fund management arm, LGIM Infrastructure, its specialist infrastructure lending and investment division, and Commercial Lending Limited (CLL), its commercial lending arm.

Arora Group

The Arora Group is a successful UK-focused private group of companies, which leverages synergies across its specialist property, construction and hotel divisions to its strategic advantage. Since 1999, the Group has built its standing through meticulously managing projects from inception to delivery and beyond. Today, it owns and manages a diverse portfolio of flagship assets across the nation's key business locations, partnering with some of the world's most recognised brands to deliver consistently high service levels and sustainable growth.

For more information please visit http://www.thearoragroup.com/.