UK student accommodation owner and operator Empiric Student Property has opted for a £40 million long-term loan from Canada Life to finance a portfolio of four forward-committed properties.
The fixed-rate facility will be secured against the UK properties once they reach practical completion, which is expected to be ahead of the 2016/2017 academic year. The loan will be available for full draw-down from 27 July.
Canada Life has priced the loan at a fixed all-in rate of 3.52 percent and with a maximum loan-to-value of 50 percent. Empiric has a near-term LTV target of 35 percent. The loan is repayable in two £20 million tranches in March 2024 and July 2031.
Empiric is also financed by Royal Bank of Scotland and Santander.
“Canada Life continues to be a supportive lending partner with this new additional long term facility which helps to support the overall funding structure of Empiric,” said Paul Hadaway, chief executive of Empiric Student Property.
The firm also said in its interim results today (1 March) that it has launched a second 12-month share issuance programme comprising 165 million shares. The initial target raise is £90 million and Empiric said it is raising the fresh equity in order to achieve its stated objective to acquire 10,000 beds.