Leicester property firm ‘going from strength to strength’
Custodian REIT, the Leicester-based property investment firm, has bagged an extension to its revolving credit facility (RCF) after enjoying a period of sustained growth.
Back in 2014, the company agreed a facility of £25 million with Lloyds Bank Commercial Banking for a term of five years – a sum which was increased to £35 million in 2015.
Capping a successful period for the company, Lloyds has now agreed to increase the total funds available under the RCF from £35 million to £50 million for a term of three years. The firm has also been given the option to extend the term by a further two years subject to the bank’s agreement.
Custodian REIT recently sold a 39,279 sq ft mixed-use scheme in Scotland for £9.1 million and last year purchased a 14,926 sq ft Volkswagen car dealership in Loughborough for £2.4 million.
Richard Shepherd-Cross, managing director of Custodian Capital, said: “Since IPO, the RCF has been crucial in providing flexibility to facilitate the company’s growth while minimising cash drag from equity issuance and opportunistic property disposals to maintain a fully covered dividend. We are delighted to have increased the RCF to £50 million and secured it for at least three more years at a lower interest margin, which should reduce net finance costs, provide additional capacity to exploit acquisition opportunities and maintain the flexibility to minimise cash drag.”
Richard Round, relationship director for real estate and housing in the Midlands at Lloyds Bank, added: “Custodian REIT has gone from strength to strength since its IPO in 2014 and we are pleased to have supported it throughout its journey. From loans in 2015, the first long-term financing agreement through our partnership with Scottish Widows, and 2016 to, most recently, extending its RCF.
“This deal will ensure Custodian REIT can expand its property portfolio to drive further growth. We look forward to seeing the business prosper in the coming years and supporting it every step of the way.”
