31st Mar 2009 14:48
31 March 2009
The Advantage Property Income Trust Limited
("TAP" or the "Company")
NOTICE OF AMENDMENT OF BANK FACILITY
The Board of TAP, the Guernsey-incorporated listed high income UK commercial property investment company, announces that it has agreed an amendment to the terms of the revolving bank facility held by its wholly owned subsidiary, TAPP Property Limited, with Bank of Scotland ("the Amendment"). The Amendment provides for revised margins over the 3 month London Interbank Offered Rate on the basis of a sliding scale of loan to value ("LTV") ratios up to a maximum of 70%. This compares to the previous maximum LTV ratio of 55%. The facility, which is due to expire on 27 January 2015, has been revised as follows:
|
LTV up to 55%: |
200bps |
|
LTV of 55% - 60%: |
250 bps |
|
LTV of 60% - 65%: |
300 bps |
|
LTV of 65% - 70%: |
350 bps |
The margin on the whole facility is set at each quarterly interest payment date by reference to the LTV at that particular date. The ratcheted margin will apply to both rising and falling LTVs. There will be an arrangement fee of £390,000 to implement the Amendment.
Commenting on the Amendment, Chris Fish, Chairman of TAP said: "The Amendment provides the Company with additional and welcome financial flexibility. The Company remains committed to its stated strategy of reducing debt through sales where asset management initiatives have been completed. I can confirm that TAP has completed the sale of two assets during the quarter, raising £1.2m. These sales were completed at levels in line with current valuations and the monies will be used to further reduce debt."
The full details of these asset disposals will be covered in the Spring Snapshot report due to be published in April.
For further information please visit www.tapincome.com or contact:
|
Chris Carter Keall/Fraser Kennedy, Valad Property Group |
020 7659 6666 |
|
Jeremy Carey, Tavistock Communications Limited |
020 7920 3150 |
|
James Maxwell/Brad Cheng, Singer Capital Markets Limited |
020 3205 7500 |
|
Anson Fund Managers Limited, Secretary |
01481 722260 |
Note to Editors:
The Advantage Property Income Trust Ltd ('TAP') is a quoted commercial property company which focuses on providing high levels of income and income growth through investing in a diverse range of commercial properties across the UK and the Channel Islands. It was launched in February 2005 and listed on both The Channel Islands and London Stock Exchanges. The Company is domiciled in Guernsey and is structured in a tax efficient way.
TAP's circa £200 million portfolio comprises a well-diversified range of assets including retail, retail warehouse, offices, and industrial and leisure properties. Its assets are geographically spread across the UK and the Channel Islands, albeit with alarge concentration in the South-East of England.
The Company is run by an independent board of non-executive directors who have significant experience in property, the quoted sector and offshore investment vehicles. Valad Asset Management (UK) Limited has been appointed as the Property Fund Adviser. It advises TAP on investment decisions and provides portfolio accounting and active asset management to the Company through a team of finance and property professionals.
E&OE - in transmission
Related Shares:
TAP.L