10th Sep 2019 10:49
(Alliance News) - Civitas Social Housing PLC on Tuesday said it has entered into a GBP60.0 million five-year term loan with National Westminster Bank PLC.
The agreement with NatWest also allows the London-listed social housing real estate investment trust to extend the loan by two years and the option of a further GBP40.0 million accordion.
The accordion option can be requested by Civitas during the first 18 months of the facility, subject to NatWest's consent.
The facility increases the company's financial flexibility, Civitas said, and demonstrates "the continued attraction" of the supported housing sector to the UK's major lenders.
Chair Michael Wrobel said: "We are delighted to have secured this new competitively priced facility, which follows a detailed programme of due diligence and independent third-party valuation by the bank. The facility will enable the delivery of further safe, high quality homes for vulnerable adults in the UK."
NatWest Real Estate Director Mark Pope added: "NatWest is proud to support Civitas in the delivery of much needed new social homes across the country. Our funding reflects the flexible, consistent and sustainable approach NatWest has to providing finance to all parts of the residential sector, to ensure the continued availability of appropriate housing."
Shares in Civitas were 0.1% lower at 83.49 pence each in London on Tuesday morning.
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