REG - Residential Secure - Expansion of Revolving Credit Facility

Banco Santander SAAnnouncement

14/09/2022 08:15

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RNS Number : 3532Z  Residential Secure Income PLC  14 September 2022

14 September 2022

Residential Secure Income plc
("ReSI plc" or the "Company")

Expansion of Revolving Credit Facility

Residential Secure Income plc (ReSI plc) (LSE: RESI), which invests in
independent retirement living and shared ownership to deliver secure,
inflation-linked returns, is pleased to announce that it has agreed a £15mn
expansion of its £10mn revolving credit facility with Santander UK plc.

The expansion comes with an interest rate margin reduction of 55 basis points,
from 2.80% to 2.25%, as well as a one-year extension of the facility
termination date to March 2025.

The expanded £25.0mn facility capacity and reduced interest rate margin allow
for more efficient management of the Company's working capital and provide
lower-cost bridge financing for future investments.

Ben Fry, Managing Director of Housing at Gresham House, and Fund Manager of
ReSI plc, said:

"This facility increases our flexibility and as such is a critical component
of ReSI's growth plans. It gives us an attractive source of bridge financing
as housing associations continue to seek to unlock capital for future
development. We are pleased to continue our partnership with Santander in this
way."

Jon Bowring, Head of Professional & Financial Services for Corporate &
Commercial Banking, Santander UK, added:

"We are pleased to increase our support to ReSI plc structured in a way that
supports ongoing portfolio growth and the needs of the business. This further
demonstrates our commitment to the UK affordable housing sector and to growing
our relationship with ReSI plc."

 

- ENDS -

 

For further information, please contact:

 

 Gresham House Real Estate

 Ben Fry                    +44 (0) 20 7382 0900

 Brandon Holloway

 Peel Hunt LLP

 Luke Simpson               +44 (0) 20 7418 8900

 Huw Jeremy

 KL Communications          gh@kl-communications.com (mailto:gh@kl-communications.com)

 Charles Gorman             +44 (0) 20 3995 6673

 Charlotte Francis

 Millie Steyn

 

 

 

About ReSI plc

 

Residential Secure Income plc ("ReSI plc" LSE: RESI) is a real estate
investment trust (REIT) focused on delivering secure, inflation-linked returns
with a focus on two resident sub-sectors in UK residential - independent
retirement rentals and shared ownership - underpinned by an ageing demographic
and untapped and strong demand for affordable home ownership.

 

ReSI plc targets a secure, long-dated, inflation-linked dividend of 5.16 p per
share in FY 2022(i) (paid quarterly) and a total return in excess of 8.0% per
annum. As at 30 June 2022, including committed acquisitions, ReSI plc's
portfolio comprises 3,291 properties, with an (unaudited) IFRS fair value of
£389mn(ii).

 

ReSI plc's purpose is to deliver affordable, high-quality, safe homes with
great customer service and long-term stability of tenure for residents. We
achieve this through meeting demand from housing developers, housing
associations, local authorities, and private developers for long-term
investment partners to accelerate the development of socially and economically
beneficial affordable housing.

 

ReSI plc's subsidiary, ReSI Housing Limited, is registered as a for-profit
Registered Provider of social housing, and so provides a unique proposition to
its housing developer partners, being a long-term private sector landlord
within the social housing regulatory environment. As a Registered Provider,
ReSI Housing can acquire affordable housing subject to s106 planning
restrictions and housing funded by government grant.

 

 

About Gresham House and Gresham House Real Estate

 

Gresham House is a London Stock Exchange quoted specialist alternative asset
manager committed to operating responsibly and sustainably, taking the long
view in delivering sustainable investment solutions.

 

Gresham House Real Estate has an unparalleled track record in the affordable
housing sector over 20 years, with senior members having an average of c.30
years' experience.

 

Gresham House Real Estate offers long term equity investments into UK housing,
through listed and unlisted housing investment vehicles, each focused on
addressing different areas of the affordable housing problem. Each fund aims
to deliver stable and secure inflation-linked returns whilst providing social
and environmental benefits to its residents, the local community, and the
wider economy.

 

Further information on ReSI plc is available at www.resi-reit.com
(http://www.resi-reit.com) , and further information on Gresham House is
available at www.greshamhouse.com (http://www.greshamhouse.com)

Notes:

(i.       ) The dividend target and total return target are targets
only and are not profit forecasts. There can be no assurance that either
target will be met, and they should not be taken as an indication of the
Company's future results.

(ii.      ) excluding the finance lease gross up and including £15mn of
committed acquisitions.

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