PGIM Real Estate Finance (REF) has provided a £90 million loan to Tritax Big Box REIT secured against a portfolio of three standing properties and one forward-funded asset.
The 10-year facility has a fixed all-in rate of interest of 2.54 percent per year. The amounts drawn down under the facility will be segregated and non-recourse to Tritax Big Box REIT. Further assets can be added to the facility in future.
Tritax said that the proceeds will be used to acquire further investments.
The facility maintains the group’s weighted average margin payable across its facilities at 1.43 percent while reducing the averaged capped cost of borrowing to 2.78 percent. The deal extends the group’s weighted average unexpired loan term from 4.7 year to 5.3 years.
“This facility provides further attractive, long-term, fixed rate debt financing whilst further diversifying our borrowing with a strong global lender in logistics, which has the capacity to participate in our growth plans. It also extends the average maturity and staggers the exit profile of our loans,” said Colin Godfrey, partner at Tritax.
PGIM REF is a subsidiary of PGIM, the global investment management businesses of US-based Prudential Financial. The business, which was previously known as Pricoa, provides secured senior lending and is led in Europe by Bryan McDonnell. Its investors are the Prudential Financial general account and other third party clients.
PGIM REF acted as agent and security agent on the Tritax transaction.