Residential Secure Income PLC £14.45M OF DEBT SECURED ON LOCAL AUTHORITY HOUSING (2955O)
January 29 2019 - 1:00AM
UK Regulatory
TIDMRESI
RNS Number : 2955O
Residential Secure Income PLC
29 January 2019
29 January 2019
GBP14.45 MILLION OF DEBT SECURED ON LOCAL AUTHORITY HOUSING IN
LUTON
Residential Secure Income plc ("ReSI" or the "Company") (LSE:
RESI), which invests in residential asset classes that comprise the
stock of UK social housing providers, announces that it has
obtained a GBP14.45 million debt facility, secured against the 289
units in its local authority housing portfolio.
The financing package will be used to fund the portfolio pending
refinancing with long term debt in combination with other assets.
The facility has a 3 year term and a margin of 1.50%, with the rate
to be fixed at the time of drawing. The terms recognise the
underlying leases are with an investment grade local authority, in
this instance Luton Borough Council, in line with ReSI's stated
strategy at IPO.
TradeRisks and ReSI are continuing to work with debt investors
to put in place further borrowing against ReSI's recent and future
acquisitions, in line with its strategy to target an overall level
of indebtedness of 50% loan to gross asset value and a low cost of
long-term funding.
Having raised GBP180 million of equity at IPO, ReSI has to date
invested GBP234 million in acquiring a portfolio of 2,435
residential units serving retirement, Local Authority housing and
shared ownership tenants.
ReSI intends to use the proceeds of this facility and of future
borrowing to fund further acquisitions, predominantly in the shared
ownership sector, for which ReSI has agreed heads of terms, subject
to exclusivity, and on which ReSI is currently performing detailed
legal and property due diligence.
FOR FURTHER INFORMATION, PLEASE CONTACT:
ReSI Capital Management Limited / TradeRisks
Limited
Ben Fry
Jonathan Slater
Mark Rogers
Alex Pilato
Richard Stubbs +44 (0) 20 7382 0900
Jefferies International Limited
Stuart Klein
Gary Gould +44 (0) 20 7029 8000
FTI Consulting +44 (0) 20 3727 1000
Richard Sunderland Email: resi@fticonsulting.com
Claire Turvey
Richard Gotla
Notes:
Residential Secure Income plc (LSE: RESI) is listed on the
premium segment of the Official List of the UK Listing Authority
and was admitted to trading on the Main Market of the London Stock
Exchange in July 2017.
ReSI has been established to invest in portfolios of Homes
across residential asset classes that comprise the stock of Housing
Associations and Local Authorities, comprising Shared Ownership
Homes and Rental Homes (being Market Rental Homes, Functional Homes
and Sub-Market Rental Homes) throughout the UK.
ReSI is managed by ReSI Capital Management Limited, a wholly
owned subsidiary of TradeRisks Limited which has a 17 year track
record of executing transactions within the UK social housing
sector and, to date, has arranged funding of over GBP10 billion in
the social housing, care and other specialist residential property
sectors.
ReSI seeks to deliver secure, long-dated, inflation-linked
income returns through investment in UK social housing. It aims to
meet demand from Housing Associations and Local Authorities for
alternative equity-like financing sources that allows them to
recycle capital back into socially and economically beneficial new
housing, making a meaningful contribution to the UK housing
shortage.
Homes acquired by ReSI will predominantly be on a freehold or
long leasehold basis (typically 99 years or more to maturity) and
benefit from long term (typically 20 years plus) inflation-adjusted
cash flows. Acquisitions by ReSI will be limited to Homes with
sufficient cashflows, counterparty credit quality and property
security that allow the Fund Manager to arrange long-term
investment grade equivalent debt.
Further information on ReSI is available at
www.resi-reit.com
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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