As well as being responsible for over 30 million journeys every day, Transport for London (TfL) is one of London’s largest landowners, owning a 5,700-acre estate that includes land as well as in-station and out-of-station retail properties, arches, car parks, bus garages, offices, and residential units.
TfL re-invests the income generated from these properties into improving its transport network. Furthermore, its landholdings play a vital role in meeting the London Mayor’s priorities to build affordable homes.
In April 2019, the transport company consolidated all commercial and other property assets from across its group into a new subsidiary, TTL Properties Limited (TTLP).
TfL was looking to provide TTLP with an independent funding source and settled on a new £200m Revolving Credit Facility. This Facility provides sufficient funding for TTLP to commit to future investment, whilst becoming financially independent from TfL.
To advise on an appropriate structure for the financing package and execute the transaction, TfL turned to its longstanding banking partner, NatWest, to support in the role of Documentation Coordinator and Facility Agent.
The NatWest team worked closely with TTLP on their financing strategy and, based on those discussions, tailored the funding package and arranged their inaugural club facility.
Allen & Overy LLP acted as legal counsel for the lending group whilst Clifford Chance LLP advised TTLP on the transaction.
Graeme Craig, Director of Commercial Development at Transport for London (TfL), said: “As part of our long-term strategy, we are now taking forward development activity through a commercial property company (TTLP) that is wholly owned by TfL, financed independently of our transport network. This builds on the successful work that has already taken place in recent years, which is already helping to deliver thousands of new homes for the capital, with 50 per cent affordable housing across the current portfolio. This three-year, revolving credit facility for up to £200m is the first to be negotiated directly with TTLP and is without recourse to TfL. It will allow TTLP to progress commercially viable projects in the long term, thus generating sustainable returns to TfL that can be reinvested into public transport.”
Kim Slater, Head of Loan Markets at NatWest, said: “We’re delighted to have been able to support TfL with this inaugural revolving credit facility. As the UK’s biggest supporter of businesses and a major lender, we’re committed to helping companies such as TTLP grow further and enhance the lives of millions of Londoners. This transaction is also a great example of working across teams and pulling together the right people at the right time to achieve the best outcome for our customers”
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