The Property Income Trust for Charities, a fund managed by Mayfair Capital Investment Management, has signed a £42m sustainability-linked loan facility with Aviva Investors.
The seven-year facility carries a rate of 2.65% and is secured against seven properties in the fund. The fund will receive margin incentives in return for implementing environmental improvements to the properties such as EPC enhancements, solar panel installations and the introduction of electric vehicle car-charging points.
The deal reduces the fund’s weighted cost of debt to 2.6% from 3.1%, and extends its average loan term to 4.9 years.
Fund director Simon Martindale said: “With economic prospects improving, we believe it is an opportune time to take advantage of historic low borrowing rates and secure a long-term facility that will contribute positively to enhancing distributions to investors.”
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