ReSI Capital Management Limited

21-26 Garlick Hill,

London EC4V 2AU

0207 3820900

resi@resicm.com

Media relations

​FTI Consulting

+44 (0) 20 3727 1000
resi@fticonsulting.com

  • LinkedIn - White Circle
  • Twitter - White Circle
Please reload

Recent Posts

£53 Million debt secured on retirement flats portfolio

June 29, 2018

Residential Secure Income plc ("ReSI" or the “Company”) (LSE: RESI), which invests in residential asset classes that comprise the stock of UK social housing providers, is pleased to announce that, as envisaged at the time of acquisition of the Retirement Housing Partnership portfolio (“RHP”) in November 2017, it has secured £53mn of 25 years fixed rate debt from an insurance company that is partially amortising and finally repayable in 2043.

 

The debt is priced at an all-in fixed rate of 3.4507%, is held at subsidiary level and will be secured against 1,365 retirement units representing leverage of around 50% (loan/gross assets).

 

TradeRisks arranged the debt for ReSI which recognising the strong credit metrics has been classified as investment grade.

 

The debt reached heads of terms stage with the investor before the acquisition of RHP but completion was delayed in order to manage costs of carry until the proceeds were required by ReSI. In order to mitigate interest rate exposure on the financing before completion, this was partially pre-hedged using an interest rate swap. The swap was unwound at pricing, and the resulting cashflow hedge reserve will be released over the 25 year life of the debt.

 

The majority of the proceeds of the debt are envisaged to be used to facilitate (with existing cash reserves making up the remainder) two acquisitions totalling £54mn where ReSI has agreed heads of terms. These transactions are subject to exclusivity and are currently undergoing detailed legal and property due diligence with a view to closing in July and August respectively.

 

This debt financing forms part of the strategy to target an overall level of indebtedness of 50% loan to gross asset value and a low cost of long-term funding, which together enhance the returns to equity available to ReSI shareholders.

 

TradeRisks and ReSI have continued to work with long term debt investors and are in discussions to put in place further long-term investment grade equivalent debt against ReSI’s recent and imminent acquisitions.

 

 

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

ReSI Capital Management Limited

Jonathan Slater

Ben Fry

Alex Pilato

+44 (0) 20 7382 0900

 

 

Jefferies International Limited

Stuart Klein

Gary Gould

+44 (0) 20 7029 8000

 

 

FTI Consulting                                                                                                  

Richard Sunderland                                                                                         

Claire Turvey

Richard Gotla

+44 (0) 20 3737 1000

Email: resi@fticonsulting.com

 

 

 

 

 

 

 

 

Tags:

Share on Facebook
Share on Twitter
Please reload

Follow Us
Please reload

Search By Tags
Please reload

Archive
  • LinkedIn Social Icon
  • Twitter Basic Square