TIAA has provided a £165m (€194.2m) loan to UK retail property specialist Capital & Regional.

Capital & Regional announced the facility as it confirmed the refinancing of £372.5m of debt on five shopping-centre assets.

TIAA’s £165m loan has a 10-year term with a one-year extension option.

Capital & Regional chief executive Hugh Scott-Barrett said the refinancing provided the group with “the security of long-term funding, while also taking advantage of the historic low level of current interest rates”.

He added: “It also diversifies the sources and maturities of our debt and increases the quantum to fund future capex efficiently at the asset level whilst maintaining significant flexibility for asset recycling.” 

The group has drawn £362.5m of the total £372.5m package, which also includes a seven-year loan for £107.5m from Wells Fargo.

A £100m, five-year facility with two one-year extension options was provided by The Royal Bank of Scotland.

Interest on the new facilities has been fixed, Capital & Regional said, with an overall blended rate of 3.27%.