In QuotedData’s morning briefing on 18 August 2023:
- Impact Healthcare REIT (IHR) has purchased a new £50m interest rate cap, which caps SONIA at 4.0% for two years expiring on 15 August 2025, at a cost of £1.76m. The group has now hedged or fixed the interest rates on 92% (£175m) of its current drawn debt of £191m. The weighted average cost of drawn debt is 4.66% based on SONIA of 5.4%. At current hedging and drawn debt levels, an increase of 50 basis points (bps) in SONIA will result in a 4 bps increase in the weighted average cost of drawn debt. The group’s gross loan to value (LTV) ratio at 30 June 2023 was 28.5%.
- Great Portland Estates (GPE) has acquired the freehold interests at 16/19 Soho Square, 29/43 Oxford Street and 7 Falconberg Mews, W1, from Belgravia & Chelsea Property Services Limited, for around £70m. The consideration was met from GPE’s existing undrawn facilities and cash. The 57,456 sq ft mixed-use buildings are currently multi-let with annual rent of £1.48m. Vacant possession is expected by March 2024, at which point GPE plans to demolish the buildings and develop a new office scheme. The 0.5 acre site, near to Tottenham Court Road, has planning consent in place to demolish the existing buildings and deliver around 90,000 sq ft of new Grade A office and prime retail space. GPE intends to re-work the designs to improve the quality of office and retail space. The redevelopment will provide HQ office building on Soho Square with flagship retail fronting Oxford Street, arranged over basement, lower ground, ground and eight upper floors, with multiple private terraces and a communal roof terrace.