New Loan Facility of £30.63 million with RBS
7th September 2016
The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, is pleased to announce that the Group has agreed a new loan facility (the "Facility") of £30.63 million with The Royal Bank of Scotland plc ("RBS"). The Facility is secured against a portfolio of five forward funded assets, held as a lending group through a wholly owned subsidiary, Empiric Investments (Five) Limited.
The Facility is a development loan with each of the properties allocated a loan limit which will be drawn down in agreed stages over the development period of the property. The Facility will convert into an investment loan for each development, separately, providing that, inter alia, such development has reached practical completion.
The amounts drawn down under the Facility will be segregated and non-recourse to the Company. In accordance with the Company's investment policy, the Company will maintain a conservative level of aggregate borrowings, targeting a level of 35 per cent. but no more than 40 per cent. of the gross asset value of the Company (calculated at the time of draw down).
Strategic advice on the structure and assistance in arranging the debt was provided by JCRA.
Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"RBS continues to support Empiric's strategy through the provision of this development debt facility. The Facility will help to maximise the Group's development potential, enabling us to recycle equity currently committed to our forward funded developments."
Nick Cussen, Director - Real Estate Finance, RBS, commented:
"Empiric has established itself as a leading investor in both operating and development assets in the growing UK student accommodation market. We're pleased to provide ongoing and increased support for their future development plans."
Questions? Get in touch using the contact details below.
Questions? Get in touch.
Empiric Head Office
Empiric Student Property plc
1st Floor, 72 Borough High Street London, SE1 1XF
+44 (0)20 3828 8700
Dido Laurimore/Eve Kirmatzis
+44 (0)20 3727 1000
Tom Yeadon/Andrew Morris
Jefferies International Limited
020 7029 8000
Capel Irwin / Carl Gough
Peel Hunt LLP
020 7418 8900