Eskmuir secures £80m refinancing

The property investment manager has signed a deal with RBS and issued a £95m bond to back growth plans.

London-based property company Eskmuir has closed an £80 million (€90.1 million) refinancing deal with Royal Bank of Scotland to fund future property acquisitions across the UK.

RBS will refinance the firm’s revolving credit facility for its charity fund, the Diversified Property Fund for Charities, which is exempt from stamp duty, capital gains and corporation taxes. At the end of September 2017, the vehicle had £51.7 million of assets, managed on behalf of 15 investors. Through the fund, the firm invests in UK commercial real estate.

“DPFC provides charity investors with attractive income returns of 6-7 percent and has delivered a total return of over 12 percent for 2017,” Paul Hodgson, managing director of Eskmuir, said.

“Together with the revenues raised via a recent sales round, we are looking towards future acquisitions in line with our strategy to target multi-let properties with diversified income streams and asset management potential.”

Eskmuir has also issued and listed on the London Stock Exchange a 30-year, £95 million bond. The fresh capital will be used to complete further “significant transactions” in 2018 and beyond, the investment manager said.

In Q3 2017, Eskmuir sold six assets for a total of £52 million. The sale included the Trio Portfolio, a set of three freehold last mile warehouse units located throughout England’s south-east; Ashford Industrial Estate at Heathrow; Equinox North and South offices near Bristol and Collingwood retail park in Fareham.