Supermarket Income REIT, the UK supermarket real estate investor, announces that it has secured a Revolving Credit Facility of €108.2m (£100m) from HSBC.
The RCF is a facility with an initial three-year term and two further one year extension options. Once drawn, the RCF has an opening margin of 160 basis points over 3 month LIBOR which is currently equivalent to a total cost of 2.2% per annum.
The RCF will provide the Company with flexible capital to fund the growth of the property portfolio while also allowing the Company to manage its capital structure in line with its investment policy. The Company will follow a prudent approach to gearing with medium term borrowings as a percentage of gross assets expected to be approximately 30 to 40%.
Ben Green, Director of Atrato Capital, the Investment Adviser to Supermarket Income REIT, said: “We have secured a flexible RCF ensuring we can maintain an efficient balance sheet and enabling us to act quickly on attractive investment opportunities. We were very pleased with the level of bank interest we received on this transaction which reaffirms the strong fundamentals of this asset class.”
