11th Feb 2014 10:23
LONDON (Alliance News) - Student accommodation developer Unite Group PLC Tuesday said it has secured a new GBP124 million, fixed-rate 10-year debt facility with Cornerstone Real Estate Advisers Europe LLP, bringing an end to its recent refinancing programme that sought to cut the costs of its funding and diversify sources.
In a statement, Unite said the loan is secured against four of its portfolio at 50% loan-to-value and extends its average debt maturity to seven years at an average cost of debt of 4.7%.
"It furthers UNITE's objective of extending debt maturities, reducing the cost of funding and diversifying funding sources and introducing new lenders to the group, with over two-thirds of the group's debt now provided from non-bank-sources," Unite said.
"This transaction...marks the conclusion of our planned refinancing programme having raised GBP1.1 billion over the last 12 months," Chief Financial Officer Joe Lister said.
Unite Group shares were up 0.1% at 435.30 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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