2 Oct 2015 13:32
2 October 2015
SECURE INCOME REIT PLC ("SIR" or the "Company")
COMPLETION OF £903 MILLION FINANCING
The Board of Secure Income REIT Plc, the specialist long term income REIT, announces the completion of £903 million of new financing arrangements.
As disclosed in the Company's interim results announcement on 29 September 2015, two of the three new debt facilities had been drawn by that date and the third had been signed, fully committed ahead of anticipated draw down on 2 October 2015. This third facility is a new ten year fixed rate non-recourse loan facility secured on 11 of the Group's healthcare assets and amounting to £315.6 million. The drawdown of the loan completed as expected today and was provided by funds managed by AIG Asset Management (Europe) Limited.
Following completion of this final stage of the replacement of the Group's loan facilities, the whole of the Group's secured debt now amounts to £902.6 million with a weighted average term to expiry of nine years and a weighted average cost of debt of 5.2% secured on the Group's property portfolio, independently valued as at 30 June 2015 at £1,346.9 million.
As announced on 9 September 2015, ahead of the new financing arrangements being entered into, the Company reached agreement with the original lender, Bank of Scotland Plc ("BOS"), to reduce swap break costs and other fees that would otherwise have crystallised as a result of the accelerated repayment of the Group's loan facilities by up to 30%, subject to a maximum of £27.5 million, in recognition of the economic advantages to BOS of early debt repayments. £14.1 million of savings were achieved on 9 September 2015 and repayment of the BOS financing today has increased the cost saving to the maximum of £27.5 million. The actual final total early repayment costs were in line with the estimates made in calculating the pro forma EPRA Net Asset Value of 275.3 pence per share, as disclosed in the Company's interim results announcement of 29 September 2015.
Martin Moore, Chairman commented: "As highlighted at our interim results, this marks the final stage of the refinancing with long term, cheaper debt. In conjunction with the asset sales completed earlier this year, this means that the Company can now begin to pay out a dividend, expected to commence next autumn, ahead of the timescales anticipated at the time of the IPO last year."
Enquiries:
Secure Income REIT Plc | +44 20 7647 7647 |
Nick Leslau Sandy Gumm |
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Stifel Nicolaus Europe Limited (Nominated Adviser) | +44 20 7710 7720 |
David Arch | |
Tom Yeadon | |
FTI Consulting | +44 20 3727 1000 |
Richard Sunderland | |
Claire Turvey | |
About Secure Income REIT
Secure Income REIT floated as a Real Estate Investment Trust on the AIM segment of the London Stock Exchange in June 2014. Upon Admission, the Company had a share price of 174p, representing a market capitalisation of £293 million, which has subsequently grown to c. £450 million.
The Company specialises in generating long term, inflation protected, secure income from real estate investments. Its investment strategy is designed to satisfy investors' growing requirements for high quality, safe, inflation protected income flows.
In its unaudited interim results for the six months ended 30 June 2015 the Company reported gross assets of £1.3 billion and, with a weighted average unexpired lease term of 24 years across its portfolio, all with annual fixed or RPI rental uplifts, has one of the longest income profiles in the UK's quoted property sector.
The Company's Board is chaired by Martin Moore and also comprises three further independent Directors in Leslie Ferrar, Jonathan Lane and Ian Marcus, as well as three members of the Prestbury Team in Nick Leslau, Mike Brown and Sandy Gumm.
The Company is externally managed by Prestbury Investments LLP which was also external manager to Max Property Group plc until August 2014, when was sold to Blackstone Group.