Palace Capital secures £40m facility
Palace Capital has agreed a new £40m revolving credit facility with NatWest, reducing its cost of debt.
The loan has a maturity of five years, and replaces an existing £29.4m facility with the bank.
The REIT said the agreement will provide additional firepower over current drawings to support operational flexibility, deliver further portfolio initiatives and offers wider scope for new investments.
Palace Capital has agreed a new £40m revolving credit facility with NatWest, reducing its cost of debt.
The loan has a maturity of five years, and replaces an existing £29.4m facility with the bank.
The REIT said the agreement will provide additional firepower over current drawings to support operational flexibility, deliver further portfolio initiatives and offers wider scope for new investments.
It is currently £106.2m drawn on its existing facilities, with loan-to-value standing at 34% at 31 March. Debt facilities total £154.6m.
See also: Palace Capital marks latest milestone with REIT conversion
With the new facility, the initial weighted average cost of debt, prior to amortisation of fees, at current rates will be 3.2%, reducing to 3.1% if fully drawn. This compares with an equivalent of 3.3% during the year ending 31 March.
At current drawings, the company is 65% fixed or hedged, and the possibility of additional hedging remains under review.
Stephen Silvester, finance director at Palace Capital, said: “This new facility further strengthens our financial platform, takes our average debt maturity out to 4.7 years and provides us with greater flexibility to implement our active programme of portfolio management, refurbishment and development at a highly competitive cost of debt whilst remaining within our targeted LTV range of 30% to 40%.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
