Empiric Student Property has taken a secured £80m fixed-rate loan from Cornerstone Real Estate Advisers.
The 12-year interest-only loan is secured against 20 operating assets and represents a loan-to-value of around 55%. The cost of the loan will be 3.24%.
Part of the facility will be used to refinance £37.2m of debt held with Santander and Royal Bank of Scotland. The balance of £42.8m will be used to fund further acquisitions.
As part of the agreement, Empiric will have access to a further £40m for drawdown before 7 December 2016.
Paul Hadaway, chief executive of Empiric Student Property, said: “This facility enables the group to reduce our overall cost of borrowing and extend our average unexpired loan term. The facility also provides the debt resource needed to support our growth plans and business model.
We look forward to working with Cornerstone over the long term.”
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