Empiric Student Property has announced that it has agreed a new £32.8m loan facility with AIB Group (UK). The Facility, which is secured against a portfolio of five forward funded assets, is a development loan which will be drawn down in agreed stages. The practical completion of all five forward funded assets expected by July 2017. The company says that the facility will then convert into an investment loan providing that, inter alia, the developments have reached practical completion.
The Facility is available to draw down in full, subject to the fulfilment of certain conditions precedent, until 15 October 2017. The development loan must be repaid by the 29 December 2017 or, if earlier, the date on which the five developments achieve practical completion. The investment loan must be repaid in full by 31 October 2018. The interest rate in respect of the development loan is at a margin of 2.80% per annum over LIBOR and in respect of the investment loan is at a margin of 1.80% per annum over LIBOR.
Empiric Student Property puts financing in place for five forward funded assets : ESP