The board of Empiric Student Property has agreed a new £40m loan facility which will be an extension of its existing £80m fixed rate term loan through Barings Real Estate Advisers.
It will be put towards funding further investments in both operating assets and forward funded projects.
The new facility is now secured against a portfolio of 25 assets held as a lending group through a wholly owned subsidiary Empiric Investments (Four) Limited.
The new facility is expected to be drawn down in full on 16 December 2016 and repayable in April 2028. It has a fixed rate of 3.64% throughout the term, interest only.
This rate is fixed up to a loan-to-value ratio of 55%. This provides a fixed all-in blended rate of 3.37% for the amended and restated facility.
Paul Hadaway, chief executive of Empiric Student Property, said: “This extended long-term facility helps the group to maintain our low overall cost of borrowing and further extend our average unexpired loan term. The amended and restated facility also provides further debt resource to help support our growth plans and business model. We are pleased to have built on and extended our excellent working relationship with Barings, one of the largest global real estate investment managers and debt providers.”
Strategic advice on the structure and assistance in arranging the debt was provided by JCRA Group.
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