CIRCLE COMPLETES £100 MILLION BANK REFINANCING

RNS Number : 9352P

Circle Property PLC

13 February 2019

 

13 February 2019

Circle Property Plc

("Circle" or the "Company")

CIRCLE COMPLETES £100 MILLION BANK REFINANCING

Circle Property Plc (AIM: CRC), the specialist regional UK office investment, development and management company, announces that it has completed an agreement with RBS and HSBC for a £100 million new financing facility. The facility replaces a £55 million facility with RBS agreed in June 2016 and amended in March 2018.

The new facility comprises a senior revolving facility agreement for £60 million, with an "accordion" option to extend the facility by a further £40 million. The facility has a four-year term, with the option of a further two-year extension, at an interest rate of 2.05% over LIBOR.

John Arnold, CEO of Circle Property Plc, commented: "We believe there will be some attractive buying opportunities emerging as we progress into 2019. Where vendors are seeking a rapid sale to a reliable purchaser, this new enlarged facility will put us in a strong position to compete effectively in the regional markets in which we specialise".

"This new facility has also allowed us to diversify our pool of lenders by working with HSBC for the first time, while extending our relationship with RBS."

Circle has out-performed the majority of listed real estate companies since admission to AIM in February 2016, generating 82% growth in Net Asset Value since IPO. Measured by Total Return, Circle is the best performing listed UK real estate company over the last two years.

The Company focuses on well-located but under-utilised and good quality offices in key regional centres, targeting properties too small to appeal to institutional buyers but too large for private investors and creating value by utilising the management team's proven asset management skills.  While the Company has a progressive dividend policy, as it is not a REIT, Circle does not have to distribute a set level income, and so can target refurbishment opportunities for vacant space which it successfully re-lets.

This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.

Circle Property Plc	[phone]
John Arnold, CEO Edward Olins, COO
Cenkos Securities plc	[phone]
Azhic Basirov Katy Birkin Radnor Capital Joshua Cryer Iain Daly	[phone]
FTI Consulting	[phone]
Giles Barrie Richard Sunderland Eve Kirmatzis

 

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