Shaftesbury agrees new £200m loan with Aviva Investors

by | Aug 14, 2023

(Sharecast News) – Property investor Shaftesbury Capital announced a significant financial development on Monday, in the form of a new loan agreement with Aviva Investors.
The FTSE 250 company said the agreement entailed a 10-year loan worth £200m, backed by a portfolio of assets within the Carnaby estate.

It said the newly-established facility would complement its existing secured term loans from Aviva Investors, valued at £130m and £120m and set to mature in 2030 and 2035, respectively.

Both of those existing loans shared the asset security linked to the Carnaby estate.

The additional funding had been strategically priced with reference to 10-year UK gilt yields.

When combined with the pre-existing Carnaby term loans, the annual cash interest rate for the cumulative secured term loans of £450m with Aviva Investors was projected to be 4.7%.

Shaftesbury said the proceeds generated from the facility would partially repay a £576m unsecured loan that was drawn in April.

That initial loan was used to facilitate the repayment of the Shaftesbury plc secured bonds.

As a result, the move would extend the weighted average maturity of the drawn debt to five years.

Additionally, it would lead to a reduction in the weighted average cost of debt to 4.2%.

Taking into account the interest income on cash deposits and the advantages of interest rate hedging, the effective cash cost was anticipated to be 3.3%.

“We are pleased to have extended our relationship with Aviva Investors through the new long-term financing of £200m, which enhances the company’s debt maturity profile and highlights the attractiveness of our exceptional portfolio,” said chief financial officer Situl Jobanputra.

Reporting by Josh White for

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