UK REIT LondonMetric Property has announced that it has entered into a £130 mln private placement with US and UK institutional investors.
It was placed at a blended fixed rate coupon of 2.70% and a weighted average maturity of 8.3 years in three tranches.
LondonMetric said the the proceeds would be used to pay down some of the debt drawn under the company's existing unsecured credit facility, which will remain available to draw in full.
'We are very pleased to have established new lending relationships with four strong institutional investors. The private placement provides further diversification of funding sources at attractive rates and allows us further capacity to increase our investments within the long let logistics market,' commented Martin McGann, finance director of LondonMetric.
As a result of the private placement, the group's weighted average debt maturity as at 30 September 2016 is expected to increase to 5.7 years.
