Life Science REIT has refinanced its existing £35.9 mln (€40.7 mln) asset-level development debt facility, acquired with the Oxford Technology Park asset.
The debt facility carried a high interest rate and an expiry date of June 2023.
The real estate investment trust focused on UK life science properties refinanced this by drawing down £26.3 mln (€29.7 mln) from £150 mln (€169.4 mln) in facilities from lender HSBC, as well as by using existing cash resources.
The HSBC facilities include a £75 mln (€84.7 mln) fully drawn term loan capped at a maximum annual cost of 4.25%, as well as a £75 mln revolving credit facility with a cost of sterling overnight interbank average rate plus 2.25%.
Simon Farnsworth, Ironstone Asset Management managing director and Life Science REIT's investment adviser, said: ‘We have taken the opportunity to repay the outstanding Oxford Technology Park debt earlier than the termination date in June 2023 prudently using the company's existing HSBC facility to minimise interest and debt facility management costs following the lapse of significant early redemption penalties. Additionally, this will provide the potential for further refinancing of Oxford Technology Park in the near future.’
Following the refinancing, £48.7 mln (€55.0 mln) remains available in the revolving credit facility for future use, while the look-forward and blended interest cost should be reduced by around 100 basis points.
The additional drawdown is secured against Life Science REIT's acquisitions at Herband Street, London, Lumen House, near Oxford, and the Merrifield Centre in Cambridge.
