Valad Europe, the multi-let real estate investment manager, has completed a £37 million (approx. €45 million) refinancing of the University Capital Trust (UCT) with Lloyds Banking Group, extending the term of the debt facilities to December 2014.
Martyn McCarthy, Chief Executive Officer for Valad Europe, commented: "This refinancing demonstrates that, even in today's lending constrained environment, banks will lend if they have confidence in the investment manager's track record and in the future performance of the assets. In the past few years, student accommodation has proved to be a resilient asset class compared with other real estate sectors and UCT has benefited from this by delivering income growth and stable valuations. Having received interest from a number of lenders at competitive rates, we are delighted to be continuing our close relationship with Lloyds Bank."
Michael Weir, a Director within Lloyds Bank Corporate Real Estate Team responsible for the transaction, commented: "Valad Europe has delivered an outstanding total property performance over a sustained period with their management of UCT. As such, Lloyds Bank is delighted to be able to continue to support the Trust and its business with the refinancing of the portfolio."
In 2012, Valad Europe refinanced over £1.2 billion (approx. €1.4 billion) across its funds and mandates with a variety of bank lenders. These included the £950 million (approx. €1.167 million) refinancing of its DUKE joint venture and the £250 million (approx. €307 million) cross-border refinancing of its European High Income Fund, jointly underwritten by a group of banks including BAWAG P.S.K, Helaba, Natixis and pbb.
The University Capital Trust comprises five purpose built student accommodation buildings, located in London, Newcastle, Nottingham, Sheffield and Lincoln, each providing between 200 and 400 beds.
With offices in London, Leeds, Edinburgh and Scarborough, Valad Europe's UK real estate team of 80 people manage £700 million (approx. €860 million) of investment assets and £400 million (approx. €491 million) of development projects in the UK, comprising 12 million ft² of office, retail, student accommodation, logistics and industrial space, across 210 properties, accommodating 1,300 commercial tenants and 1,200 student tenants.
Source: Valad Europe