Warehouse REIT has secured a new five-year, £220m debt facility with a club of lenders to replace its existing £210m HSBC facility.
The refinancing package agreed with HSBC, Barclays, Bank of Ireland and Royal Bank of Canada comprises a £157m term loan and a £63m revolving credit facility.
It represents a 14bps saving compared to the previous blended rate and includes an option to extend the duration by a further two years, subject to lender consent.
The current HSBC facility partly expires in March and then fully expires in November 2022.
Warehouse REIT said the new facility allowed it to maintain a loan-to-value ratio of 55% and pay down the previous facility as well as providing it with money to help it maintain operational flexibility, deliver further portfolio initiatives and give wider scope for new investments.
Andrew Bird, managing director of Tilstone Partners, investment advisor to Warehouse REIT, said: “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.”
Savills’ debt advisory team acted for Warehouse REIT on this transaction.
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