Rize Circular Share News (CIRC)

(ShareCast News) - Specialist UK regional property investment, development and management company Circle Property announced the agreement of a new £50m revolving facility with Royal Bank of Scotland in Monday, for the purpose of refinancing at a lower cost £39m of Circle Property Unit Trust current facilities, as well as providing capital for further acquisitions.The AIM-traded firm said the loan has a three year term with two options to extend for a further year, with a drawdown loan-to-value ratio of up to 55% of the gross portfolio value and an interest rate of 1.85% over LIBOR.As set out in its AIM admission document in February, the new revolving facility will allow Circle Property to strategically source income-accretive acquisitions for clients, in addition to undertaking a range of asset management initiatives including the imminent refurbishment of both Great Charles Street and Somerset House in Birmingham.Following the transaction, the company's secured debt amounts to £39.14m with a weighted average term to expiry of 4.9 years and a weighted average cost of 2.45% secured on its property portfolio."The successful completion of this refinancing demonstrates significant and positive progress for the company, allowing for greater security and increased liquidity to acquire assets which will create value in the long term for shareholders and clients," said Circle Property CEO John Arnold."We look forward to deploying the proceeds, and will continue to use our on the ground regional contacts to identify attractive opportunities."