REG-UK Comm Prop REIT Ltd: Debt Refinancing at low rates and £50 million extension

UK Commercial Property REITAnnouncement

21/02/2019 07:05

21 February 2019

UK Commercial Property REIT Limited (“UKCM” or “the Group”)

Debt Refinancing at low rates and £50 million extension
LEI: 213800JN4FQ1A9G8EU25

UK Commercial Property REIT Limited (FTSE 250, LSE: UKCM), which owns a
diversified portfolio of high quality income producing UK commercial property
and is advised by Aberdeen Standard Investments (“ASI”)^ today announces
it has refinanced its debt facilities.  

The refinancing increases UKCM’s total debt by up to £50 million and means
the Group now has £95 million available to take advantage of future
investment opportunities that may arise.  In addition, the refinancing
provides the Group with:
* an increase in the weighted maturity profile of its fixed term debt from 4
years to 10 years;
* additional flexibility with £150 million (43%) of available debt now in the
form of a Revolving Credit Facility (“RCF”) available until 2024;
* Based on the current cost of the drawn RCF,  a reduction in the Group’s
current blended cost of debt from 2.89% per annum to 2.79%; and
* a maintained low net gearing of 14.7% and gross gearing of 17.4% that is one
of the lowest in the Company’s peer group and the quoted REIT sector (31
December 2018: 14.6% and 17.1% respectively).
The details of the debt refinancing are as follows:

Barclays Facility
* The £150 million Barclays term loan facility due to expire in April 2020
has been repaid along with the associated interest rate swap. The cost of
closing out the swap was £703,000 (which was accounted for in the Q4 2018
NAV). There were no repayment fees on the term loan facility.
* The current £50 million Barclays RCF has been increased to £150 million
and extended to February 2024.  £55 million of this RCF has been utilised to
repay the term loan.
Barings Real Estate (“Barings”) Facility
* A new £100 million 2.72% fixed rate facility has been taken out with
Barings Real Estate, part of Barings LLC, one of the world’s largest
diversified real estate investment managers, maturing in February 2031, which
has been used to repay the balance of the Barclays term loan facility.  The
Group now has £200 million of debt in two equal tranches with Barings with
£100 million expiring in April 2027 and £100 million in February 2031.
In total the Group now has £350 million of debt available, of which £255
million has been utilised, with £95 million of the Barclays RCF remaining
unutilised. There are no plans to draw down additional amounts from the
Barclays RCF at the current time. The portfolio value as at 31 December 2018
was £1.45 billion.

Andrew Wilson, Chairman of UKCM, commented:  “This new debt refinancing has
a number of clear benefits to the Group by extending our weighted maturity
profile, improving flexibility and reducing our cost of debt.  It also
provides additional capital that can be drawn down to allow us to take
advantage of future investment opportunities.  At the same time it allows
UKCM to maintain a prudent gearing level, which remains one of the lowest in
the REIT sector.”

Details of the Company may also be found on the Company’s website which can
be found at: www.ukcpreit.com

For further information please contact:

Will Fulton / Graeme McDonald, Aberdeen Standard Investments
Tel: 0131 245 2799 / 0131 245 3151

Edward Gibson-Watt / Oliver Kenyon, J.P. Morgan Cazenove
Tel: 020 7742 4000

Richard Sunderland / Claire Turvey / Eve Kirmatzis, FTI Consulting
Tel: 020 3727 1000

The above information is unaudited and has been calculated by Aberdeen
Standard Investments.
 

^Aberdeen Standard Investments is a brand of the investment businesses of
Aberdeen Asset Management and Standard Life Investments. The Company is
managed and advised by Aberdeen Standard Fund Managers Limited (the
Company’s appointed AIFM).



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