RDI secures €85m London flex office refinancing

UK REIT RDI has refinanced its London serviced office portfolio with a new £75 mln (€85 mln) financing facility, agreed with Aberdeen Standard Investments.

According to the firm, the seven-year loan refinances two existing facilities maturing in December 2019 and August 2022.

'We are very pleased to have established a new funding relationship with Aberdeen Standard Investments which demonstrates the increasing maturity of the London flexible office market as it develops into an institutional asset class,' said Stephen Oakenfull, deputy CEO at RDI.

'This refinancing has secured attractive rates as well as proactively extending our debt maturity,' Oakenfull addded.

A first stage drawdown of £25 mln has been completed to refinance the first of the existing facilities at a fixed rate of 2.90%. The previous weighted average rate was 3.13%. The second stage drawdown of £50 mln is anticipated to complete in August 2019.

RDI said that the portfolio of four Central London assets, with exposure to two new Crossrail stations and the Southbank market, has maintained a high occupancy rate of 94.5% as of this February, with EBITDA increasing 0.9% since August 2018 and the average tenant staying for more than 30 months.

The South African-backed REIT rejected a takeover bid by Cromwell Property Group in April of this year, with RDI's board saying that Cromwell's offer undervalued the company. 

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