Glasgow-based Regional REIT, the real estate investment company valued at £718 million, has arranged refinancing of £121 million.
A new £66 million, 10-year facility has been agreed with Santander which refinances the existing £44 million facility that was due to mature in November 2022.
In addition, a new £55 million five-year facility has been agreed with the Royal Bank of Scotland which refinances the existing £27 million facility with Royal Bank of Scotland and the £19 million facility with HSBC, both of which were due to mature in December 2021.
The group’s cost of borrowing, including hedging, will be 3.5%, with an unexpired debt term extended from 6.7 years to 7.9 years. The facilities provide the group with headroom of around £31 million to pursue attractive acquisitions that will provide additional value for the company’s shareholders.
Stephen Inglis, chief executive of London & Scottish Property Investment Management, the asset manager, said: “These two considerable refinancings with major participating institutions continue to demonstrate our steady and disciplined approach to risk management. We have secured well priced debt for the longer term whilst minimising the effect of any interest rate increases.
“Regional REIT continues to be well supported by its key lenders as it evolves through its next phase of growth capitalising on a growing pipeline of attractive near-term acquisition opportunities. We are delighted to continue to work with both the Royal Bank of Scotland and Santander, and look forward to continuing to strengthen our close working relationships over the coming years.”
Regional REIT Limited is managed by London & Scottish Property Investment Management, based in Bath Street, and Toscafund Asset Management, the Investment Manager. The portfolio has 150 properties, 1,192 units and 874 tenants as at 31 December 2018, with a valuation of £718.4 million.