Regional REIT has secured a £36m loan with Scottish Widows.
Some £13m of the 10-year facility, arranged by Bank of Scotland’s real estate and housing team, will be used to repay the outstanding balance of an ICG Longbow loan that was due to mature in August 2019.
It will have a fixed rate, which will be set on the date of the drawdown and is expected to be between 3.45% and 3.6%.
Regional REIT’s cost of borrowing will be 3.8% with an unexpired debt term of 6.5 years.
The deal follows a £165m, 10-year facility that Regional REIT agreed with Scottish Widows and Aviva Investors Real Estate Finance last December, which was also arranged by Bank of Scotland.
Stephen Inglis, chief executive of London & Scottish Investments, asset manager of Regional REIT, said: “This refinancing is another example of our disciplined approach to risk management and securing well-priced debt for longer terms to minimise the effects of any future interest rate rises.
“The new facility will enable us to repay current borrowings, execute new opportunities and maintain one of the sector’s highest progressive dividends.”
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