Aviva finances UK retail warehouse parks with £54.16m loan

The insurer has provided a fixed-rate 10-year facility at a 2.73% all-in cost.

Aviva Investors has written a £54.16 million (€61.44 million) loan to refinance the acquisition of four retail warehouse parks by UK REIT Ediston Property Investment Company (EPIC).

The 10-year loan has been arranged at a fixed all-in rate of 2.73 percent. Given EPIC’s conservative financing strategy, the leverage is understood to be less than 50 percent.

The facility has been provided to assist the acquisition of four retail warehouse parks in Prestatyn, Widnes, Hull and Barnsley from the Stadium Group.

The portfolio provides more than 540,000 square feet of accommodation, generating rents of more than £8.8 million annually from tenants including Tesco, M&S, Boots and Wilkinson. This transaction takes Aviva’s facilities with EPIC to around £111 million.

“These are well located assets with strong defensive characteristics that provide significant comfort in a dynamic retail environment,” said Gregor Bamert (pictured), head of real estate finance at Aviva.

“Given our existing relationship with Aviva, they were our go-to lender on a transaction that required working under a tight and rigid timetable of six weeks and various levels of pragmatism to make it happen,” added William Hill, chairman of EPIC.

Last month, Aviva wrote a £144 million seven-year facility to refinance a UK multi-sector portfolio owned by Aquila. The UK property investor has also secured a £16 million mezzanine facility from PGIM Real Estate.