GCP Infrastructure has announced that it has committed to subscribe for two loan notes of up to GBP60 million in aggregate, the proceeds of which will be used to finance supported living units for occupation by adults with learning or physical difficulties.
The first Loan Note, for up to GBP50 million and with an expected term of c.35 years, will be used to provide funding for the acquisition of operational supported living units. The Loan Note, of which GBP37.4 million has to date been subscribed by the Company, is secured on a senior basis against the underlying physical properties, all of which are subject to one or more 50 year fully repairing and insuring leases with one or more housing associations in England regulated by the Homes and Communities Agency.
The second Loan Note, for up to GBP10 million and with a term of up to 2 years, will be used to provide funding for the development of new supported living units. It will be secured on a senior basis against the underlying physical properties, each of which will have the benefit of an agreement to lease with one or more housing associations in England regulated by the Homes and Communities Agency.
The Loan Notes will be issued by GCP Programme Funding 1 Limited, an intermediary company set up for these purposes.
The acquisition of the Loan Notes has been financed from a combination of gross proceeds of the Company’s recent placing and its revolving credit facility.
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