Aviva Investors has completed a £264.5m refinancing for its MedicX Fund, a specialist healthcare infrastructure investor.
The new 15-year facility, which refinances existing loans and increases the total debt by £30.8m, is secured against 90 modern purpose-built medical centres.
The new loan facility consists of a new £30.8m 10 year interest only tranche with a fixed interest rate of 3.05% per annum, together with a £233.7m 15 year partially amortising tranche with a fixed interest rate of 4.69% per annum, which is equal to the blended current cost of the existing facilities. Amortisation of £40m will be spread over the 15 year term of the £233.7m tranche, with the remaining £193.7m repayable at maturity.
Gregor Bamert, head of real estate finance, Aviva Investors, said: “We are very pleased to have supported MedicX since its formation in 2006 and this transaction shows our ongoing commitment as its largest debt partner.”
Helen Mahy, chairman of MedicX, added: “We are delighted to have agreed a refinancing with our long-term funding partner, Aviva Investors. The new arrangements will improve operational efficiency and free up property collateral, enabling MedicX to undertake identified asset management projects and negotiate new facilities at competitive rates, which should reduce MedicX’s average cost of debt.”