CAPE TOWN – RDI, the income-focused UK real estate investment trust (Reit) which is also listed on the JSE, said on Tuesday that it had completed the second and final stage of its £75 million (R1.4 billion) London Serviced Office portfolio refinancing.
The facility, provided by Aberdeen Standard Investments for a seven-year term, has refinanced two existing facilities that were due to mature in December 2019 and August 2022.
The first stage drawdown of £25m was completed in May 2019 at a fixed rate of 2.9 percent and the second stage drawdown of £50m has now completed at a fixed rate of 2.45 percent. The weighted average fixed rate for the new facility has improved from 3.13 percent to 2.6 percent.
The portfolio of four Central London assets, with exposure to two new Crossrail stations and the Southbank market, has maintained a high occupancy rate of 94.5 percent (28 February 2019) with earnings before interest, tax, depreciation and amortisation increasing 0.9 percent since August 31, 2018 and the average stay now above 30 months.
RDI deputy chief executive Stephen Oakenfull said: “We are very pleased to have concluded this refinancing with Aberdeen Standard Investments and to have established a new funding relationship for the Group. This refinancing has allowed for the proactive extension of our debt maturity whilst providing us with greater operational flexibility.”