Custodian REIT Plc completed the £50 million new term loan facility it agreed with Aviva Investors Real Estate Finance April 5, increasing its agreed debt facilities to a total of £150 million.
The facility comprises two tranches of £35 million and £15 million, respectively. On April 6, the company drew down the first tranche, which is repayable April 6, 2032, with a 3.02% fixed annual interest rate payable on the balance.
The second tranche is available for drawdown on or before Oct. 5, with a fixed rate of interest payable on the balance, calculated at the same margin as the first tranche above the prevailing Treasury 4.25% 2032 gilt rate on the date of drawdown. This tranche is repayable 15 years from the drawdown date.
Custodian REIT's available cash and undrawn facilities now amount to £78.0 million, which the company plans to direct towards the acquisition of £14.1 million of properties within its pipeline. The balance will be "significantly invested" in other commercial properties within three to six months, the company said in a release.
The company expects its net gearing of 13.9% to increase to 17.0% upon completion of the planned property purchase, in line with its goal of increasing the figure further toward a 25% loan-to-value ratio.