9th Sep 2019 12:12
(Alliance News) - ICG-Longbow Senior Secured UK Property Debt Investments Ltd said Monday it has agreed to a GBP24.6 million loan commitment to an affiliate of UK bungalow homes provider RoyaleLife.
Shares in the UK real estate debt investor were down 1.4% at 97.12 pence on Monday.
The loan commitment is part of a larger GBP142.7 million loan facility alongside two other funds managed ICG-Longbow Senior's investment adviser, ICG-Longbow.
The loan will refinance a portfolio of 10 residential bungalow assets, carrying a four-year term and an initial loan-to-value ratio of 78.9%.
The day one drawings on the loan will be GBP20.3 million, with ICG Longbow Senior providing a capital expenditure facility to support RoyaleLife's business plan.
Once the loan commitment is completed, ICG-Longbow Senior will have GBP112.5 million in total invested capital, with GBP10.3 million in undrawn follow-on commitments.
Currently, the company is executing a further GBP15.3 million hotel investment and GBP6.5 million office investment, which it expects to sign in the coming weeks.
These investments, as well as the RoyaleLife transaction will be funded by ICG-Longbow Senior drawing down GBP10 million on its revolving credit facility.
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