RDI, the income focused UK-REIT, has refinanced its London Serviced Office portfolio with a new €84.5m (£75m) financing facility. The facility has been agreed with Aberdeen Standard Investments for a seven-year term to refinance two existing facilities maturing in December 2019 and August 2022. A first stage drawdown of €28.2m (£25m) has been completed to refinance the first of the existing facilities at a fixed rate of 2.90%. The previous weighted average rate was 3.13%. The second stage drawdown of €56.3 (£50m) is anticipated to complete in August 2019.
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% (28 February 2019) with EBITDA increasing 0.9% since 31 August 2018 and the average stay above 30 months.
Stephen Oakenfull, Deputy CEO at RDI, commented: “We are very pleased to have established a new funding relationship with Aberdeen Standard Investments which demonstrates the increasing maturity of the London flexible office market as it develops into an institutional asset class. This refinancing has secured attractive rates as well as proactively extending our debt maturity.”