£40 Million Debt Secured on Retirement Flats Portfolio
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, as envisaged at the time of its three most recent retirement unit acquisitions, it has obtained £40 million of 25-year fixed rate debt secured against 823 retirement units in its portfolio.
The partially amortising financing package, which has been arranged with an insurance company, is priced at an all-in fixed rate of 3.4877%. Recognising its strong credit metrics, the debt has been classified as investment grade.
ReSI intends to use the proceeds to fund further acquisitions for which ReSI has agreed heads of terms, subject to exclusivity, and is currently performing detailed legal and property due diligence.
The debt was arranged for ReSI by TradeRisks Limited. TradeRisks and ReSI are continuing to work with debt investors to put in place further borrowing against ReSI’s recent and imminent acquisitions.
Ben Fry, of ReSI Capital Management Ltd, ReSI's fund manager, said: “This debt financing forms part of the Company’s 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 are intended to enhance the returns to equity available to ReSI shareholders.”