REG - Ground Rents Inc Fnd - Refinance of loan facility on improved terms

Ground Rents Income FundAnnouncement

02/12/2025 07:00

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RNS Number : 7674J  Ground Rents Income Fund PLC  02 December 2025

2 December 2025

 

Ground Rents Income Fund plc

("GRIO" or the "Company")

 

Refinance of loan facility on improved terms

 

Ground Rents Income Fund plc announces the refinancing of its existing £8.235
million loan facility with Santander UK plc ('Santander'), which was due to
expire in July 2026.

 

The previous facility was originally put in place in May 2016, was refinanced
in April 2024 as a £19.5 million term loan and subsequently reduced to
£8.235 million following disposals.

 

The new loan terms include:

 

·      An £8.235 million facility with an extension in the loan term
from 10 July 2026 to 10 January 2028.

·      A margin of 2.50% per annum, a reduction of 25 basis points from
the previous 2.75% per annum.

·    Santander's independent valuation of the security pool is £42.8
million, reflecting a Loan to Value ('LTV') ratio of 19.2%, compared with a
new covenant limit of 45% (previously: 50%). The valuation is subject to an
industry-wide Material Valuation Uncertainty Clause.

·    Based on a current SONIA rate of 4.0%, the loan's total interest rate
is 6.50% per annum, reflecting an Interest Cover Ratio of 4.15x (after
allowing for a notional 8% collection cost), compared with a new covenant
ratio of 1.75x (previously: 1.60x).

·    All proceeds from charged asset disposals must be used to repay the
facility. Scheduled amortisation of £250,000 per quarter commences from
February 2027, with disposal proceeds offset against the outstanding
amortisation profile. There are no early repayment fees.

 

The Company remains in compliance with all loan covenants. Santander has also
provided flexibility to accept new assets as security, offering further
covenant headroom.

 

The interest rate hedging that expired in January 2025 has not been
renewed, reflecting the short duration of the new facility and the expectation
of further near-term disposals and loan repayments.

 

This refinancing provides additional time to implement the Company's strategy,
strongly approved by shareholders in November 2024, to realise assets in
an orderly and controlled manner with the objective of optimising returns to
shareholders.

 

Further disposals are progressing, and an update on the Company's audited
independent valuation as at 30 September 2025 and strategy will be included in
the 2025 Annual Report, expected to be published in December 2025.

 

Enquiries:

 

Schroder Real Estate Investment Management Limited

Chris Leek

020 7658 6000

 

Singer Capital Markets (Financial Adviser & Broker)

James Maxwell / Sam Butcher (Investment Banking)

Sam Greatrex (Sales)

020 7496 3000

 

Appleby Securities (Channel Islands) Limited (Sponsor)

Andrew Weaver / Michael Davies

01534 888 777

 

FTI Consulting

Richard Gotla / Oliver Parsons

0203 727 1000

 

JTC (UK) Limited (Company Secretary)

Ruth Wright

+44 207 409 0181

 

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