REG - KCR Residential REIT - Debt Refinancing

KCR Residential ReitAnnouncement

17/04/2025 14:15

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RNS Number : 5193F  KCR Residential REIT PLC  17 April 2025

17 April 2025

KCR Residential REIT plc

("KCR" or the "Company")

Debt Refinancing

KCR Residential REIT plc, the residential REIT group, is pleased to announce
that it has successfully completed the refinancing of the Hodge Bank
facilities.

Following a competitive process, on 17 April 2025 two wholly owned
subsidiaries of the Company, being KCR (Kite) Limited and K&C (Coleherne)
Limited entered into a new five year, Sharia law compliant facility of £7.85m
 with Al Rayan Bank Plc (the "Lender") ("Facility"). The Facility has the
equivalent of a fixed interest rate of 6.10% per annum and is secured against
all of the assets of each of KCR (Kite) Limited and K&C (Coleherne)
Limited including the Ladbroke Grove and Coleherne Road properties on a cross
collateralised basis. The principle is repayable at the end of the five year
term with only the interest equivalent payments being made monthly throughout
the term.

The new funding has been utilised to refinance the Hodge Bank facilities and
provide additional capital to support ongoing Group activities.

As outlined in the half year report, the Hodge Bank fixed rate facilities
expired earlier this year and the current market rates are substantially
higher than the legacy 3.50% fixed interest rate that was previously in place.

As indicated in the half year report, funding costs associated with the
increase in interest rate will be around £200,000 per annum higher than under
the previous fixed rate (but materially lower than the variable rate that the
facilities rolled into following expiry of the fixed rate period).

The impact of ongoing cost pressure and increased finance costs will continue
to keep the business cash constrained and make achieving a cash neutral
position more challenging.

The Group is continuing to focus on improving the operational performance of
the existing assets whilst controlling costs.

The information contained within this announcement is deemed by the company to
constitute Inside Information as stipulated under the Market Abuse Regulation
(E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European
Union (Withdrawal) Act 2018, as amended. Upon the publication of this
announcement via a regulatory information service, this information is
considered to be in the public domain.

 

The Directors of the Company are responsible for the content of this
announcement.

 

For further information please contact:

              KCR Residential REIT plc                          info@kcrreit.com (mailto:info@kcrreit.com)

              Russell Naylor, Executive Director                Tel: +44 (0)7749 963 033

              Cairn Financial Advisers LLP (Nomad)              Tel: +44 (0)20 7213 0880

 Emily Staples / Louise O'Driscoll

               Zeus Capital Limited (Broker)                    Tel: +44 (0)20 7614 5000

               Louisa Waddell

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

 

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