Ediston Property Investment Company has obtained a 10-year £40m loan from Aviva Commercial Finance for further acquisitions.
The facility is a fixed-rate loan of 3.09% secured against the company’s existing portfolio.
The loan’s rate is contingent on the company maintaining its loan-to-value ratio of below 40% and keeping within interest rate cover ratios.
The loan will leave the company with a gearing of 29% of its gross assets, which is within the company’s gearing target of 30%.
William Hill, chairman of Ediston, said: “Putting in place this debt facility and providing the means to expand the portfolio was a key part of the strategy we stated at the time the company was floated. On completion of the pending acquisitions the board will be turning its attention to the next phase of the company’s strategy by looking at the opportunities to grow its equity base.”
