Business
AEW UK REIT plc secures new debt facility
AEW UK REIT plc secures new debt facility.
About this update from Aew Uk Reit Plc
[{"type":"text","content":"\n \n \n 12 May 2022\n \n \n \n \n \n \n AEW UK REIT PLC\n \n \n \n \n \n \n \n AEW UK REIT PLC SECURES NEW DEBT FACILITY\n \n \n \n \n \n \n AEW UK REIT plc (LSE: AEWU) (\"AEWU\" or the \"Company\") is pleased to announce that the Company has secured a new £60 million 5-year term loan facility with AgFe, a leading independent asset manager specialising in debt-based investments. The loan is a fixed rate loan with a total interest cost of 2.959%. The existing £54 million RBS International loan facility, which is due to mature in October 2023, will be repaid in full by the new loan facility. Simultaneous to the funding, the Company's interest rate cap will be sold; with its value, as at 30 April 2022, being £908,000. \n \n \n \n \n \n In the current inflationary environment, the Company considers it prudent to fix the loan now, rather than run the risk of further rising rates.\n \n \n \n \n \n The Company intends to utilise borrowings to enhance returns over the next five years. In anticipation of capital receipts from the sales of both East Point Business Park in Oxford and Bath Street in Glasgow, the Company is currently reviewing an attractive pipeline of assets which offer income levels and capital growth opportunities in line with the existing portfolio. \n \n \n \n \n \n As was announced in the March 2022 NAV update, the Company had a loan to NAV ratio of 28.26%. With this new loan facility secured, the loan to NAV will be 31.40% (using the NAV as at 31/03/2022), returning the Company to its target loan to NAV ratio of 30-35%. \n \n \n \n \n \n \n Laura Elkin, Portfolio Manager of AEW UK REIT said:\n \n \"This new facility with AgFe, secured against the backdrop of increasing rates, will allow the Company to continue to invest and realise the strong pipeline of interesting opportunities that we are currently pursuing, whilst also continuing to deliver strong returns to the Company's shareholders.\"\n \n \n \n \n \n \n ENDS\n \n \n \n \n \n \n \n \n \n \n \n \n \n Enquiries\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n AEW UK\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Laura Elkin\n \n \n \n \n \n \n [email protected]\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n +44(0) 7917 058 337\n \n \n \n \n \n \n Henry Butt\n \n \n \n \n \...