Custodian REIT has announced that it has exchanged contracts to acquire a portfolio of 11 UK commercial properties for an aggregate consideration of £69.4m. Simultaneously, the company has also announced that it has entered into an agreement to extend its existing revolving credit facility with Lloyds Bank from £25m to £35m whilst extending the termination date to 13 November 2020.
The acquisition of the commercial property portfolio is expected to be completed in two tranches in early January 2016. First, the Company has unconditionally exchanged contracts to acquire £28m of assets, funded through a combination of the Company’s existing cash resources and credit facilities. Second, the Company intends to acquire the balance of the Portfolio (or part thereof), subject to the availability of proceeds from the recently announced proposal to issue new equity that was announced on 5 November 2015.
“The company says that the portfolio to be acquired comprises smaller size, good quality, secondary offices, retail and industrial assets, diversified by tenant and region and offers a number of potential asset management opportunities.
Custodian REIT to acquire 11 UK commercial properties for £64.9m : CREI