UK student housing operator Unite has received new debt facilities totalling £226 mln (€272 mln) for Unite Capital Cities (UCC), a joint venture between Unite and Singapore's GIC.
UK student housing operator Unite has received new debt facilities totalling £226 mln (€272 mln) for Unite Capital Cities (UCC), a joint venture between Unite and Singapore's GIC.
The funding is being provided in two separate facilities by Legal & General and the Royal Bank of Scotland.
Legal & General has provided a £149 mln, nine-year loan which has a 55% loan-to-value rate and is fixed at 4.3% per annum for its duration. L&G’s loan has been arranged by L&G Commercial Lending, which also acts as facility agent.
The RBS facility for £77 mln has a five-year term at an initial loan to value of 68% and average cost of 3.3% per annum.
The transaction reduces UCC’s cost of finance from 5.5% to 4.0%, generating annual savings of £3.5 mln.
UCC holds a portfolio of 14 properties valued at £385 mln, located in London and Edinburgh. Unite currently has a 30% stake in UCC.
