3rd Nov 2015 17:29
LONDON (Alliance News) - GCP Infrastructure Investments Ltd Tuesday said it has completed a transaction subscribing for a loan note with an initial value of GBP25.5 million, which will be used to acquire social housing units.
The infrastructure fund focused primarily on investments in UK infrastructure debt said the loan note has a 35 year term and it has advanced GBP1.4 million immediately with the majority to be drawn down over the next 12 months.
The loan note will be issued by GCP Social Housing 1 Ltd and the proceeds will be used to provide a loan facility secured on a senior basis to finance the acquisition of a number of social housing units for occupation by adults with learning or physical difficulties.
The social housing units will be subject to one or more fully repairing and insuring leases with terms of up to 35 years with one or more housing associations in England regulated by the Homes and Communities Agency.
"All payments of both principal and interest in relation to the loan note are expected to be serviced from the cashflows arising under the leases. The acquisition of the loan note has been financed fully from resources within the company," it said in a statement.
GCP shares closed up 0.4% to 122.12 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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