25th Nov 2013 11:23
LONDON (Alliance News) - Public Service Properties Investment Limited Monday said that it has agreed terms for the refinancing of a GBP10.5 million debt facility.
The specialist European real estate investment and financing company said that the debt facility was due to mature on December 16. However it said that the facility has been refinanced with Bank of London & The Middle East PLC, the lender of the existing facility, for a maturity date of April 12, 2016, the same maturity date as another debt facility with BLME.
Public Service Properties will repay GBP1.5 million to BLME on December 16 and refinance GBP9.0 million, resulting in aggregate borrowings on that date across both BLME facilities of GBP17.2 million. Pricing of the new facility will be set at that time. The current BLME debt has an average interest rate of 5.7%.
Upon completion of the refinancing, Public Service Properties will have a loan to value of 33%, based on the gross valuation of the secured assets as at June 30.
The company also said that it has entered into a revised asset management agreement with RP&C International, to reduce the management fee to a rate of 0.85% from 1.5% currently. The group said that the new fee arrangements are due to commence in February 2014, the termination date of the existing asset management agreement.
Shares in Public Service Properties Investment were up 0.7% Monday morning, trading at 26.69 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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