Stenprop Limited Stenprop secures new GBP66.5m debt facility (6231I)
December 15 2020 - 01:00AM
UK Regulatory
TIDMSTP
RNS Number : 6231I
Stenprop Limited
15 December 2020
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
15 December 2020
Stenprop significantly reduces cost of debt on multi-let
industrial portfolio with new GBP66.5 million long term, fixed rate
facility
Stenprop, the UK multi-let industrial ("MLI") REIT, announces
that it has secured a new seven-year, GBP66.5 million fixed rate
senior debt facility with ReAssure. 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%.
The new facility allows the Company to significantly reduce its
financing costs by around GBP930,000 per annum as a result of the
new loan being fixed at an annual rate of 1.66% compared to 3.2% on
the previous arrangement. The additional drawn funds have been used
to finance a recent MLI acquisition in Cardiff together with the
costs associated with putting the loan facility in place.
Across the whole MLI portfolio the transaction reduces the cost
of debt from 3% to 2.2% and substantially extends the weighted
average maturity from 2.8 years to 5.6 years.
James Wakelin, Head of Debt and Special Projects, commented:
"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. As
we continue our transition to being 100% MLI by the end of the
2021/22 financial year we remain flexible in our approach to
seeking ways to optimise our balance sheet."
This announcement is voluntary and for information purposes
only.
For further information:
Stenprop Limited +44(0)20 3918 6600
Paul Arenson (paul.arenson@stenprop.com)
Julian Carey (julian.carey@stenprop.com)
James Beaumont (james.beaumont@stenprop.com)
Numis Securities Limited (Financial Adviser) +44(0)20 7260
1000
Hugh Jonathan
Vicki Paine
FTI Consulting (PR Adviser) +44(0)20 3727 1000
Richard Sunderland
Richard Gotla
Neel Bose
Stenprop@fticonsulting.com
Java Capital +27 (0)11 722 3050
(JSE Sponsor)
About Stenprop:
Stenprop is a UK REIT listed on the LSE and the JSE. The
objective of the Company is to deliver sustainable growing income
to its investors. Stenprop's investment policy is to invest in a
diversified portfolio of UK multi-let industrial (MLI) properties
with the strategic goal of becoming the leading MLI business in the
UK. For further information, go to www.stenprop.com.
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END
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