Royal Bank of Scotland (RBS) has provided a £145 million loan to Airport Industrial Property Unit Trust (AIPUT), managed by Aberdeen Asset Management.
RBS’s Real Estate Finance Scotland division provided the five-year loan to refinance a five-year facility which it originally provided to AIPUT in 2010. The loan comprises a secured element and a revolving credit facility and will be used to fund future acquisitions and capital expenditure, including development at its Heathrow properties. The secured element reflects a loan-to-value ratio of around 20 percent.
AIPUT manages a £550 million portfolio of industrial warehouses located at airports. The portfolio is focussed on Heathrow Airport and is occupied by airport-related operators such as British Airways, dnata, Swissport, Gate Gourmet, DHL and UPS. Other locations include Gatwick, Stansted, Glasgow and East Midlands airports.
The refinancing comes after AIPUT’s lifespan was recently extended until 2036.
“It is testament to RBS’s appetite and understanding of our prime assets that has shaped our successful partnership, and allows us to secure the best returns for the AIPUT investors,” said AIPUT fund manager Nick Smith. “The new facility will allow us to seize exciting opportunities over the medium term and meet the strong pipeline of deals across our growing Heathrow portfolio.”
“This is a key UK portfolio of real estate assets and we have been working with Aberdeen Asset Management for the last five years on developing the estate,” added Stuart Heslop, managing director of real estate lending at RBS.