Student accommodation REIT Empiric Student Property has secured a new debt facility for £86.1m with Scottish Widows.
The 10-year loan is interest-only and fixed at 3.196% per annum.
£30.6m will be drawn in the near term, with the remaining £55.5m expected to be drawn towards the end of October 2019.
As a result of the refinancing, the company’s average debt maturity profile across all facilities will extend to eight years. The company’s loan-to-value is unchanged, in line with its long-term target of 35%.
Lynne Fennah, chief financial and operating officer of Empiric Student Property, said: “The benefits of our new £86.1m facility include reducing the company’s debt servicing costs on the refinanced debt and the extension of the company’s average debt maturity profile across all facilities.”
Duncan Smith, director of Scottish Widows Loan Investments, said: “The funding is secured against premium student accommodation in a range of key UK university cities and has been structured to meet the client’s specific refinancing requirements.”
The loan was arranged through Scottish Widows’ partnership with Lloyds Bank Real Estate and Housing.
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