UNITE completes new £124 million debt facility with Cornerstone Real Estate Advisers Europe
11 February 2014
The UNITE Group plc, the UK’s largest developer and manager of student accommodation, announces that it has secured a new £124 million, fixed-rate 10 year debt facility with Cornerstone Real Estate Advisers Europe LLP.
This new loan is secured against four of UNITE’s wholly owned portfolio at 50% loan-to-value and extends the Group’s average debt maturity to seven years at an average cost of debt of 4.7%. It furthers UNITE’s objective of extending debt maturities, reducing the cost of funding and diversifying funding sources and introducing new lenders to the Group, with over two-thirds of the Group’s debt now provided from non-bank-sources.
Joe Lister, Chief Financial Officer for the UNITE Group, said:
“We are delighted to complete this loan with Cornerstone Europe, a new relationship for UNITE. This transaction builds on the Group’s success during 2013 and marks the conclusion of our planned refinancing programme having raised £1.1 billion over the last 12 months. We have delivered on our strategy to diversify sources of funds, extend loan maturities and reduce the cost of debt.”
Chris Bates, Director – Head of Real Estate Finance at Cornerstone, said:
“We have developed a strong relationship with UNITE, and the commercial and pragmatic approach of both sides ensured that this significant transaction was closed within a month of agreeing terms. The transaction typifies our approach of working with market leading operators on quality income producing assets.”