Residential Secure Income REIT has agreed a £14.5m loan secured against the 289 units in its local authority housing portfolio.
The debt facility has three-year term and a margin of 1.5%.
ReSI will use the finance to fund its portfolio, pending refinancing with long-term debt in combination with other assets. The proceeds will be used in future acquisitions, predominantly in the shared-ownership sector.
ReSI recently announced a £300m shared-ownership venture in partnership with Morgan Sindall.
The residential investor raised £180m of equity at IPO and has to date invested £234m, this includes £184m on a portfolio of 2,112 retirement homes and £34m on 289 self-contained flats in Luton, which are leased to Luton Borough Council. ReSI’s portfolio of 2,435 homes focuses on retirement, local authority housing and shared ownership.
In its year-end report on 23 November, ReSI reported a 22.8% LTV ratio. ReSI and its parent company TradeRisks are continuing to work with debt investors on further borrowing against its portfolio to achieve a target of 50% loan to gross asset value.
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