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About this update from Kcr Residential Reit Plc
[{"type":"text","content":"\n \nRNS Number : 9067A KCR Residential REIT PLC 04 January 2018 \n\n4 January 2018\nKCR Residential REIT plc \n \nNew Borrowing \nKCR Residential REIT plc (\"KCR\" or the \"Company\") is pleased to announce that it has refinanced the outstanding £1.1 million loan made to the Company on 27 May 2016 and received a further £775,000, taking the total new loan (the \"2018 Loan\") to £1,875,000.\nThe net proceeds (after repayment of the original loan) of the 2018 Loan will be applied to the purchase of a further two long-leasehold apartments within one of its freehold retirement residential developments, with the balance of the proceeds retained for working capital purposes.\nThe 2018 Loan attracts interest at a rate of 12 per cent. per annum, payable quarterly in arrears and is repayable in full by 2 January 2019. The 2018 Loan is not convertible into equity in the Company but is secured by a first charge on the shares held by the Company in K&C (Osprey) Limited (\"Osprey\"), a wholly owned subsidiary of the Company. Whilst any of the 2018 Loan is outstanding, the Company has undertaken to utilise 60 per cent. of the net proceeds of any disposals of properties held within Osprey towards reducing the outstanding balance of the 2018 Loan and any interest then due.\nThe 2018 Loan has been made to the Company by a consortium of lenders (the \"Lenders\"). The pension scheme of Timothy Oakley (the \"Oakley Pension Scheme\"), who is a director of K&C (Coleherne) Limited, a subsidiary of the Company, and a former director of KCR, is one of the Lenders and is lending £275,000 of the 2018 Loan. This loan is classified as a related-party transaction under the AIM Rules for Companies.\nThe directors of KCR consider, having consulted the Company's nominated adviser, Arden Partners plc, that the terms of the loan by the Oakley Pension Scheme are fair and reasonable insofar as shareholders in the Company are concerned.\nThe purchases of the two apartments are consistent with the Company's stated strategy to acquire leaseholds within the Osprey portfolio in order to build long-term value and improve yield generation. The apartments will be refurbished and added to KCR's residential property portfolio with a view to Osprey granting long leases in respect of the apartments. \nContacts:\n\n\n\n\nKCR Res...