Deutsche Pfandbriefbank has extended the quantum of an existing facility put in place in November 2012 by £50m to £125m, and pushed the maturity out by two years to January 2020.
The facility allows the duo to draw down an amount equal to 50% of the value of the portfolio. As of 31 March the loan-to-value on the portfolio was 46.7%. Assuming the facility was fully drawn down the cost will also reduce to 3.7% per annum from 4.3%.
The deal is another illustration of listed property companies taking advantage of their track record as experienced investors and driving down their cost of debt with financiers that are ever more eager to compete to fund the highest-profile borrowers.
LondonMetric owns 46% of the joint venture and USS 54%. The vehicle focuses on buying retail parks in the UK.
Today it announced that it had sold two parks for a total of £14.4m in Crawley and Launceston and bought one in Liskeard (pictured) for £9m.