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(Alliance News) - Target Healthcare REIT PLC on Wednesday said it has signed a new long-term GBP50 million committed term loan facility with life insurer ReAssure Group PLC.
The investment company said the Facility carries an aggregate fixed rate of interest of 3.3% per annum for its 12-year term, maturing in January 2032.
This loan has been used to repay Target Healthcare's existing GBP40 million term loan with First Commercial Bank Ltd, it said, which was due for repayment in August 2022. The remaining GBP10 million will be used for investment opportunities, Target Healthcare said.
The company said its total borrowing capacity now stands at GBP180 million.
"Securing this institutional long-term debt funding for the group fits with our stated strategy to source and effectively use modest leverage, with the facility's 12-year duration and attractive fixed rate of interest supporting the group's objective to provide sustainable long-term returns to shareholders," said Gordon Bland, finance director of Target Healthcare fund managers.
"At the same time, the backing from an institutional lender is a strong endorsement of the investment strategy to build a diverse portfolio of modern, purpose-built care homes, which are best-placed to serve their local markets," added Bland.
Target Healthcare shares were trading 0.2% higher in London on Wednesday at 118.22 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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