Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), today announces the completion of a £75 million fixed rate 10-year facility to Regional REIT Limited (LSE: RGL).
It sees Aviva Investors providing just under half of a new £165 million club financing facility for Regional REIT. The new facility replaces five existing secured debt facilities, reducing the number of Regional REIT’s debt facilities from nine to five. It also increases the company’s average debt maturity to 6.2 years from 2.5 years. The loan is secured against a granular portfolio of over 70 regional office and industrial properties, consistent with the REIT’s strategy of investing in a diversified portfolio of actively managed UK assets.
Gregor Bamert, Head of Real Estate Finance, Aviva Investors, said:
“We are delighted to support Regional REIT with its new financing facility. The management team at Regional REIT is very experienced with a demonstrated ability to successfully manage assets through the property cycle. With a strong focus on regional assets, the REIT’s strategy is an ideal fit with our appetite to provide financing for all property sectors across the UK.”
Stephen Inglis, Chief Executive Officer of London & Scottish Investments, Asset Manager of Regional REIT, said:
“This refinancing simplifies our balance sheet, lengthens the average maturity of our debt, and better aligns our financing arrangements to our real estate strategy. The two financings announced in the last two weeks and the proposed transaction announced on 4 December demonstrate the momentum building at Regional REIT as we enter the next stage of growth.”