15th Dec 2020 08:24
(Alliance News) - Stenprop Ltd on Tuesday announced a new senior debt facility with ReAssure Group PLC to reduce the cost of debt on its multi-let industrial portfolio.
The London and Johannesburg dual-listed real estate investment trust focused on multi-let industrial properties said it has secured a seven-year GBP66.5 million fixed rate senior debt facility.
The new facility refinances an existing GBP61.5 million loan, which was due to expire in June 2022, and is secured against a portfolio of 30 multi-let industrial assets located across the UK with a loan to value ratio of 38%.
Stenprop said the new facility will reduce its financing costs by approximately GBP930,000 per year as a result of the new loan being fixed at an annual rate of 1.66% compared to 3.2% on the previous one.
Head of Debt and Special Projects James Wakelin said: "The completion of this refinancing provides us with long term stable capital, as well as the support of an institutional partner. The timing has allowed us to take advantage of the historically low interest rate environment and strong lender interest for exposure to the high growth industrial sector in order to deliver substantial savings for the business on behalf of shareholders."
On Tuesday morning, Stenprop shares were up 0.2% at ZAR26.59 each in Johannesburg, and up 0.4% at 134.00 pence in London.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
STP.L