Last checked at 
(Alliance News) - AEW UK REIT PLC on Wednesday said it has amended its loan documentation, upping its loan to net asset value covenant to 55% from 45%.
The GBP40 million loan is from Royal Bank of Scotland International Ltd and was put in place in October 2015 and expires October 2023, having had its end date extended back in October 2018.
The commercial properties-focused real estate investment trust said it expects its maximum gearing limit and expected level of borrowing are unchanged from its prospectus, with total borrowings not planned to exceed 25% of gross asset value and being typically at 20%.
As at June 30, AEW UK REIT's loan to net asset value was 33.7% while its loan to gross asset value was 25%. No changes are to be made to the trust's borrowing levels, and the margin charged under the facility will remain the same after the amendment.
Portfolio Manager Alex Short said: "The above amendment provides the company with a cost effective way of reducing risk in its debt position. We will continue to keep gearing at conservative levels in accordance with the company's stated policy."
Shares in AEW UK REIT were up 0.3% at 91.25 pence in London on Wednesday morning.
By Anna Farley; annafarley@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.