Shaftesbury Capital raises £200m debt from Carnaby estate

Shaftesbury Capital has signed a £200m loan with Aviva Investors. The 10-year loan will be secured against a portfolio of assets within the REIT’s Carnaby estate. The facility will sit alongside Shaftesbury’s existing secured-term loans with Aviva Investors of £130m and £120m, which mature in 2030 and 2035 respectively. These are also secured against the Carnaby estate. The annual cash interest rate for the overall £450m of loans will be 4.7%. The proceeds of the facility will be used to repay part of the £576m unsecured loan which was drawn in April 2023 to fund the repayment of Shaftesbury plc’s secured bonds. As a result of the deal, the weighted average maturity of drawn debt will be extended to five years, and the cost of debt will be reduced to an effective cash cost of 3.3% after taking into account the interest income on cash deposits and the benefit of interest rate hedging. As part of the agreement, sustainability-related metrics will be taken into account. Situl Jobanputra, chief financial officer at Shaftesbury Capital, said: “We are pleased to have extended our relationship with Aviva Investors through the new long-term financing of £200m, which enhances the company’s debt maturity profile and highlights the attractiveness of our exceptional portfolio.” Gregor Bamert, head of real estate debt at Aviva Investors, added: “We are delighted to complete our first financing agreement with Shaftesbury Capital, building on our existing and long-standing relationship with the business. We have a strong conviction on well-curated and thriving locations, managed by market-leading clients, of which the Carnaby estate and Shaftesbury Capital are both compelling examples.” The REIT was advised on the facility by Rothschild & Co. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Image: Shaftesbury