Home REIT has secured a £130m interest-only debt facility from Scottish Widows.
The new 15-year facility will be fixed at an all-in rate of 2.53% per annum.
The REIT, which funds the buying and building of accommodation for homeless people, said the margin was five basis points lower than its existing £120m facility, also with Scottish Widows.
Home REIT said it was targeting a conservative level of gearing, with a maximum level of aggregate borrowings of 35% of its gross assets.
Gareth Jones, partner at Alvarium Home REIT Advisors, said: “Scottish Widows’ decision to provide Home REIT with further funding is a strong endorsement of our strategy and will be instrumental in supporting our growth ambitions as well as our purpose of helping to alleviate homelessness in the UK. Our acquisitions programme remains on track and we continue to focus on deploying the remaining proceeds of the recently oversubscribed equity placing.”
Scottish Widows associate director Neil McHugh added: “The additional long-term funding we are providing to Home REIT will help increase the provision of high-quality accommodation for people facing homelessness. Housing is a key focus for Scottish Widows and we are very pleased to be able to once again show our support to Home REIT.”
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