abrdn Property Income Trust
Limited
(an authorised closed-ended investment company incorporated in
Guernsey with registration number 41352)
LEI Number:
549300HHFBWZRKC7RW84
12 October
2022
EXTENSION OF DEBT
FACILITY
abrdn Property Income Trust (API) has completed an extension to
its borrowing arrangements with the Royal Bank of Scotland
International (RBSI).
API currently has two facilities with RBSI, a £110m term loan
and a £55m Revolving Credit Facility (RCF) (of which £17m is drawn
currently, but which will shortly be repaid from the proceeds of
the recently completed sale of the Rainham industrial investment).
Both facilities are due to expire in March
2023. The LTV as at 30 June
2022 was 21.05%.
An extension has been agreed for a three year tenor with a term
loan of £85m and an RCF of £80m. The new facility will start in
March 2023 with a margin of 150bps
over Sonia for both the term loan and the RCF. It is intended that
the term loan will be fully drawn on commencement. The RCF will be
used to provide liquidity for the Company and the Board intends to
manage the level of debt to retain an LTV in the range of 20 –
30%.
The Company has entered into a forward interest rate Swap on the
full amount of the term loan. The RCF will have a floating rate
based on the prevailing Sonia rate. The cost of the Swap is 5.47%
(giving an all-in rate of 6.97% on the £85m borrowed under the term
loan).
Jason Baggaley, Fund Manager of
API commented “We are delighted to have extended our relationship
with RBSI, who we have a longstanding relationship with. The margin
of 150bps is very competitive, and reflects that relationship along
with the quality of the portfolio. The impact of the elevated SWAP
rates is disappointing, and we have reduced the size of the term
loan as a result. “
All Enquiries:
Jason Baggaley – Real Estate Fund
Manager, abrdn
Tel: 07801 039463 or jason.baggaley@abrdn.com
Mark Blyth – Real Estate Deputy Fund
Manager, abrdn
Tel: 07703 695490 or mark.blyth@abrdn.com