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Residential Secure (RESI)

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Tuesday 29 January, 2019

Residential Secure

£14.45M OF DEBT SECURED ON LOCAL AUTHORITY HOUSING

RNS Number : 2955O
Residential Secure Income PLC
29 January 2019
 

29 January 2019

 

£14.45 MILLION OF DEBT SECURED ON LOCAL AUTHORITY HOUSING IN LUTON

 

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, announces that it has obtained a £14.45 million debt facility, secured against the 289 units in its local authority housing portfolio.

 

The financing package will be used to fund the portfolio pending refinancing with long term debt in combination with other assets.  The facility has a 3 year term and a margin of 1.50%, with the rate to be fixed at the time of drawing.  The terms recognise the underlying leases are with an investment grade local authority, in this instance Luton Borough Council, in line with ReSI's stated strategy at IPO.

 

TradeRisks and ReSI are continuing to work with debt investors to put in place further borrowing against ReSI's recent and future acquisitions, in line with its strategy to target an overall level of indebtedness of 50% loan to gross asset value and a low cost of long-term funding.

 

Having raised £180 million of equity at IPO, ReSI has to date invested £234 million in acquiring a portfolio of 2,435 residential units serving retirement, Local Authority housing and shared ownership tenants

 

ReSI intends to use the proceeds of this facility and of future borrowing to fund further acquisitions, predominantly in the shared ownership sector, for which ReSI has agreed heads of terms, subject to exclusivity, and on which ReSI is currently performing detailed legal and property due diligence. 

 

FOR FURTHER INFORMATION, PLEASE CONTACT: 

 

ReSI Capital Management Limited / TradeRisks Limited

Ben Fry

Jonathan Slater

Mark Rogers

Alex Pilato

Richard Stubbs

 

+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 3727 1000

Email: [email protected]

 Notes:

 

 

es and Sub-Market Rental Homes) throughout the UK.

 

date, has arranged funding of over £10 billion in the social housing, care and other specialist residential property sectors.

 

t demand from Housing Associations and Local Authorities for alternative equity-like financing sources that allows them to recycle capital back into socially and economically beneficial new housing, making a meaningful contribution to the UK housing shortage.

 

es with sufficient cashflows, counterparty credit quality and property security that allow the Fund Manager to arrange long-term in

 

www.resi-reit.com

 

 

 


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