LONDON (Alliance News) - Empiric Student Property PLC on Wednesday said it has agreed a new GBP40.0 million extension to its existing GBP80.0 million loan facility arranged by Barings Real Estate Advisers LLC.
The student accommodation owner and operator said the enlarged facility is now secured against a portfolio of 25 operating assets, held as a lending group through Empiric's subsidiary Empiric Investments (Four) Ltd.
The new GBP40.0 million facility is expected to be drawn down in full on Friday, taking Empiric's loan-to-value ratio to 30.5% from 22.7% at the end of June. Empiric said it was targeting a "conservative level" of aggregate borrowing, at around 35% and no more than 40% of its gross asset value.
Empiric said the enlarged facility is repayable in April, 2028, and has a fixed all-in blended rate of 3.37%.
The new GBP40.0 million facility will be used to fund further investments in both operating assets and forward funded projects, Empiric said.
"This extended long-term facility helps the group to maintain our low overall cost of borrowing and further extend our average unexpired loan term. The amended and restated facility also provides further debt resource to help support our growth plans and business model," said chief Executive Paul Hadaway.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Empiric (ESP)