UK-based property company Regional REIT has signed a £165 million (€188 million) secured loan with Scottish Widows, through its partnership with Lloyds Bank’s Bank of Scotland, and Aviva Investors.
The 10-year facility has a “very competitive” fixed rate of interest, the UK REIT said. The rate will be set on the date of drawdown and is anticipated to be between 330 basis points and 340bps. The firm’s cost of borrowing, including hedging, would remain at around 380bps, it noted.
The new loan replaces five existing secured debt facilities, reducing the number of the firm’s debt facilities from nine to five. It also increases the average maturity of its debt to 6.2 years, from 2.5 years.
This refinancing follows a five-year loan of £52.4 million agreed with Santander UK last month.
“This refinancing simplifies our balance sheet, lengthens the average maturity of our debt, and better aligns our financing arrangements to our real estate strategy,” said Stephen Inglis, chief executive officer of London & Scottish Investments, the asset manager of Regional REIT.
Inglis added that Regional REIT is entering the “next stage of growth”.