Regional REIT Limited New £165m 10 year facility agreed (0876Z)
December 12 2017 - 5:01AM
UK Regulatory
TIDMRGL
RNS Number : 0876Z
Regional REIT Limited
12 December 2017
REGIONAL REIT
("Regional REIT", "the Group" or "the Company")
New GBP165m 10 year facility agreed
Simplifies debt profile and increases average maturity to over 6
years
Regional REIT Limited (LSE: RGL) is pleased to announce today it
has agreed a new GBP165m secured 10-year facility ("The New
Facility") with Scottish Widows Limited and Aviva Investors Real
Estate Finance, arranged by Bank of Scotland plc.
The New Facility replaces five existing secured debt facilities
thereby reducing the number of Group debt facilities from nine to
five. It also increases the average maturity of the group debt to
6.2 years from 2.5 years.
The New Facility has a very competitive fixed rate which will be
set on the date of drawdown and is anticipated to be 330 bps to 340
bps, resulting in the Group cost of borrowing, including hedging,
remaining at c.380 bps.
This refinancing follows the recently announced GBP52.4m 5-year
facility agreed with Santander UK.
Stephen Inglis, Chief Executive Officer of London & Scottish
Investments, the Asset Manager of Regional REIT, commented: "This
refinancing simplifies our balance sheet, lengthens the average
maturity of our debt, and better aligns our financing arrangements
to our real estate strategy. The two refinancings announced in the
last two weeks and the proposed transaction announced on 4
December, demonstrate the momentum building at Regional REIT as we
enter the next stage of growth."
- ENDS -
Enquiries:
Headland
Francesca Tuckett / Bryony Sym / Jack Gault / - 0203 805
4822
About Regional REIT
Regional REIT Limited (LSE: RGL) ("Regional REIT", the "Group"
or the "Company") is a London Stock Exchange Main Market traded
specialist real estate investment trust focused on office and
industrial property interests in the principal regional locations
of the United Kingdom outside of the M25 motorway.
Regional REIT is managed by London & Scottish Investments,
the Asset Manager, and Toscafund Asset Management, the Investment
Manager, and was formed by the combination of two existing funds
previously created by the Managers as a differentiated play on the
expected recovery in UK regional property, to deliver an attractive
total return to Shareholders and with a strong focus on income.
The Group's investment portfolio, as at 30 June 2017, was spread
across 150 regional properties, 1,093 units and 823 tenants. As at
30 June 2017, the investment portfolio had a value of GBP640.4m and
a net initial yield of 6.7%. The weighted average unexpired lease
term to first break was 3.5 years.
The Company's shares were admitted to the Official List of the
UK's Financial Conduct Authority and to trading on the London Stock
Exchange on 6 November 2015. For more information, please visit the
Group's website at www.regionalreit.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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