Business
Banking Facility Refinanced
Regional REIT Limited has successfully extended its £72.4 million banking facility by three years to December 2028, reducing the outstanding balance from £99.8 million. The facility's margin remains unchanged, and it will be fully hedged to maturity, with new hedging commencing in August 2026. This extension will extend the Group's weighted average unexpired debt term to 2.6 years, and while there will be no immediate change to borrowing costs, the weighted average cost of debt is anticipated to increase from 3.4% to approximately 4.1% after the current hedge expires. Disclaimer*
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n\n24 December 2025\nREGIONAL REIT Limited\n(\"Regional REIT\", the \"Group\" or the \"Company\")\n£72.4m Banking Facility Refinanced to December 2028\n \nRegional REIT Limited, the regional commercial property specialist, is pleased to announce that it has successfully agreed a 3-year extension to the debt facility (the \"Facility\"), which was due to mature in August 2026. This Facility was originally £128.0m. Through an active debt reduction programme of property disposals, the outstanding balance has been significantly reduced to £72.4m (31 December 2024: £99.8m).\nThe Facility's margin remains unchanged. In line with company policy, the Facility will be fully hedged to maturity. The existing hedging remains in place until August 2026, after which new hedging will commence beginning then through to expiry.\nWith the Facility extension, the lending group will comprise of The Royal Bank of Scotland, the Bank of Scotland and Santander UK plc. The Company has the ability to request two one-year extensions to the Facility's expiry date, pending lender approval.\nAs a result of the refinancing the Group's weighted average unexpired debt term will extend to 2.6 years. There will initially be no change to the cost of borrowing until the expiry of the existing hedge, at which point it is anticipated that the weighted average cost of debt will increase to circa 4.1% from 3.4%.\n \nStephen Inglis, Head of ESR Europe LSPIM, Investment Adviser commented:\n\"Securing this facility extension on competitive terms underlines the strength of our banking relationships and the attractiveness of our portfolio. The 3-year extension of the £72.4 facility will provide stability as we continue to execute our strategy, with a focus on continuing to reduce debt, improving income and adding value via our capex programme.\"\n \n \n \n- ENDS -\n\n\n\n\nESR Europe Investment Management Ltd\n\n\nTel: +44 (0) 203 831 9776\n\n\n\n\nInvestor Relations\n\n\n\n\n\n\n\nAdam Dickinson\n\n\n\n\n\n\n\n \n\n\n\n\n\n\n\nESR Europe LSPIM Limited\n\n\nTel: +44 (0) 141 248 4155\n\n\n\n\nInvestment Adviser to the Group\n\n\n\n\n\n\n\nStephen Inglis\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nFTI Consulting\n\n\nTel: +44 (0)20 3727 1000\n\n\n\n\nFinancial Communications\n\n\[email protected]\n\n\n\n\nDido Laurimore, Giles Barrie\n\n\n\n\n\n...