On 14 August 2015, Custodian REIT and Scottish Widows, with Lloyds Bank acting as agent, entered into an agreement for Scottish Widows to provide the Company with a new term loan facility of £20m, repayable on 14 August 2025. Under the terms of the agreement, the Company will pay fixed interest of 3.935% per annum on the balance.
On drawdown of the New Loan, Custodian REIT had uncommitted facilities of £24.4m available to deploy, with £9.8m of properties currently under offer and in solicitors’ hands. Net borrowings are 15.5% loan to value, which will rise to 20.9% loan to value on completion of the purchase of the pipeline properties. This is in line with the Company’s objective to increase gearing towards a ratio of 25% loan to value.
CREI : Custodian REIT secures new funding