Stenprop has agreed a new senior debt facility for £66.5m with insurance company ReAssure.
The seven-year deal refinances a £61.5m loan due to expire in June 2022. The line is secured against a portfolio of 30 multilet industrial sites with a loan-to-value ratio of 38%, and part of the money has been used to finance an acquisition in Cardiff.
The new funding is priced at 1.66%, compared with 3.2% for the loan it replaces, and so lowers Stenprop’s financing costs by £930,000 a year.
James Wakelin, Stenprop’s head of debt and special projects, said: “The timing has allowed us to take advantage of the historically low interest rate environment and strong lender interest for exposure to the high growth industrial sector in order to deliver substantial savings for the business on behalf of shareholders.”
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