McKay Securities, the only UK REIT specialising exclusively in the London and South East office and industrial markets, announces that it has signed a new €43.5m (£40m) five year revolving credit facility with Santander. This replaces a €38.1m (£35m) facility with the same lender that expires at the end of 2017, taking McKay’s total facilities to c. €195.7m (£180m). The Group is currently drawn c. €159.9m (£147m) on its existing facilities (34% LTV at 31st March 2017 values) and would have an average cost of debt at current rates of c. 3.7% if fully drawn.
McKay also confirms the appointment of Knight Frank as independent external valuer, whose services will commence with the valuation of the portfolio at 30th September 2017, for inclusion within the Group’s Half Year Results, to be announced in November 2017.
Simon Perkins, CEO of McKay, commented: “We are pleased to build on our long term relationship with Santander with a well priced facility that also provides flexibility to facilitate our active programme of portfolio management. The appointment of Knight Frank as our external valuer followed a competitive tender process, where they demonstrated extensive knowledge of our markets and a clear capability to provide the valuation resource that our growing portfolio requires.”
PWC acted as debt advisor to McKay Securities.
