Gunners go-ahead for new stadium

Arsenal today announced the official go-ahead for their ambitious new stadium plans at Ashburton Grove.

The Gunners have been locked in a drawn-out search for funding for the £400m (€592m) new stadium, which is seen by manager Arsene Wenger as fundamental to the club’s long-term future.

However, in a statement to the Stock Exchange, the Gunners announced that the funding was now in place and that work could begin in earnest with a due completion date of 2006.

"Following months of negotiation, Arsenal are today delighted to confirm that funding for their stadium project has been secured and construction and regenerative work in and around the site has already resumed, thus ensuring the new 60,000-capacity stadium opens as planned for the start of the 2006-2007 season.

“To finance this highly complex project, Ashburton Properties have obtained a £260m (€384m) senior loan facility from a stadium facilities banking group which comprises: the Royal Bank of Scotland PLC, Espirito Santo Investment, The Bank of Ireland, Allied Irish Banks PLC, CIT Group Structured Finance (UK) Limited and HSH Nordbank AG.

"Interest on the senior debt is set at a commercial fixed rate over the 14 year term.

“Arsenal are contributing the balance of the stadium project costs through funds from Granada, Nike and the sale of surplus land assets relating to the stadium site.

“Also once the club relocates in 2006, Arsenal have planning permission for a residential development of Highbury.

“Appropriate backing facilities have also been secured for other members of the Arsenal Group with the Royal Bank of Scotland PLC and Barclays Bank plc, Barclays will continue to act as bankers to Arsenal Football Club.”