UK-based residential property owner Grainger has announced the injection of additional liquidity in its core UK debt portfolio through the raising of a £228mln (EUR 287mln) five-year revolving credit facility. The group's debt now averages a five-year maturity, with the main facility averaging four years. The main facility's first refinancing will be due in June 2010.
UK-based residential property owner Grainger has announced the injection of additional liquidity in its core UK debt portfolio through the raising of a £228mln (EUR 287mln) five-year revolving credit facility. The group's debt now averages a five-year maturity, with the main facility averaging four years. The main facility's first refinancing will be due in June 2010.
Grainger said the new facility will raise its 'headroom' to approximately £412 mln (EUR 520mln), including £73 mln (EUR 92mln) in cash. The average lending margin on its core UK debt has only increased four basis points to 77 basis points, giving the company flexibility to act on acquisition opportunities and raise shareholder value.
Andrew Cunningham, Grainger's deputy chief executive and finance director, commented: 'Liquidity, the availability of finance and securing debt of longer maturities are vital factors for real estate companies in the current credit environment. We are very encouraged that our relationship banks continue to support us in such a positive way, demonstrating third party confidence in the robustness of our business model. It is particularly pleasing that we have introduced two new participants, Bank of Ireland and Handelsbanken, to the core group of lenders and we look forward to working with them in the future.'
