Warehouse REIT, the AIM-listed warehouse investor, has entered into a new five year £220 million debt facility, to replace the existing HSBC facility totalling £210 million.
The refinancing, which comprises a £157 million term loan and a £63 million Revolving Credit Facility, has been agreed with a club of lenders consisting of HSBC, Barclays, Bank of Ireland and Royal Bank of Canada.
The debt facility is at a margin of 2% per annum above LIBOR, representing a 14bpts saving compared to the previous blended rate. The new facility provides a five year term and includes an option to extend the duration by a further two years, subject to lender consent. The current HSBC facility expires, in part, in March 2020 and the majority in November 2022.
”This long term facility, secured from a high quality club of lenders, further strengthens the Company’s balance sheet and provides greater flexibility to implement the active programme of portfolio management and take advantage of the attractive acquisition opportunities that the team continues to source in the market, underpinned by solid occupational demand. We now move forward with a highly competitive cost of debt and an attractive debt maturity profile,” said Andrew Bird, Managing Director of Tilstone Partners Limited.
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Savills Debt Advisory team acted for Warehouse REIT on this transaction.