Civitas Social Housing has secured a new seven year term, interest only, loan facility of £84.55m from M&G Investment Management.
The facility is priced at 2.75% above a fixed rate set by reference to the LIBOR swap rate of the loan term, and is repayable seven years from the date of utilisation.
Civitas said the facility will support its continuing growth plans. Civitas intends to utilise the proceeds of the facility during 2021 to enable the purchase of high-quality properties that form part of the pipeline of new transactions.
”The drawdown of the facility will increase the company’s LTV (based on gross portfolio assets) to 34.6% maintaining the Company’s ongoing objective of a preferred gearing level of c. 35% of gross portfolio asset value with a ceiling of 40% of gross portfolio asset value,” said the company in a statement.
“We are delighted to have secured this new loan facility from M&G, a leading institutional lender with extensive experience and understanding of the social housing sector. We expect this loan to be utilised over the coming months to bring forward our extensive pipeline of high quality properties and continue to deliver on our dual mission of stable long-term income for our shareholders and excellent long-term accommodation for the residents in our properties,” said Michael Wrobel, Chairman of Civitas.
Duncan Batty, Director, M&G Investment Management Limited, added: “We are very pleased to provide this new seven year facility for Civitas to enable the Company to continue to expand its portfolio of dedicated care-based acommodation.”