UK Commercial Property REIT, advised by Aberdeen Standard Investments, has refinanced its debt facilities to the tune of £50 mln (€58 mln) with Barclays and Barings Real Estate.
The refinancing means the group now has £95 mln available to take advantage of 'future investment opportunities', the REIT said. It also increases the weighted maturity profile of its fixed term debt from 4 years to 10 years.
Furthermore, UK Commercial Property said the refinancing would bring additional flexibility with £150 mln (43%) of available debt now in the form of a revolving credit facility (RCF) available until 2024.
Based on the current cost of the drawn RCF, that creates a reduction in the group’s current blended cost of debt from 2.89% per annum to 2.79%. Its net gearing stays at a low 14.7% with gross gearing at 17.4%.
The debt refinancing has been inked with Barclays and Barings Real Estate.
'This new debt refinancing has a number of clear benefits to the group by extending our weighted maturity profile, improving flexibility and reducing our cost of debt,' said Andrew Wilson, chairman of UKCM.
'It also provides additional capital that can be drawn down to allow us to take advantage of future investment opportunities. At the same time it allows UKCM to maintain a prudent gearing level, which remains one of the lowest in the REIT sector,' Wilson concluded.
