Custodian REIT has agreed a short-term extension of its £35m revolving credit facility with Lloyds Bank to £45m until 30 June 2019 to provide additional capacity for property acquisitions.
In February 2014, the UK REIT agreed a revolving credit facility of £25m for a term of five years. This was increased in November 2015 to £35m with a termination date of November 2020.
The facility is secured by way of a first charge over a discrete portfolio of properties, providing the lender with a maximum loan-to-value ratio of 50% on those properties specifically charged to it and a floating charge, with interest cover of at least 250% LTV.
Under the terms of agreement Custodian REIT is to pay interest of 2.45% above three-month LIBOR per annum on the outstanding amounts used under the agreement.
Richard Shepherd-Cross, managing director of Custodian REIT’s discretionary investment manager Custodian Capital, said: “Securing additional short-term debt capacity will provide flexibility to exploit any acquisition opportunities arising over the next six months.”
