Revised - New Debt Facility

RNS Number : 6834R

ING UK Real Estate Income Trust Ltd

26 August 2010

 



ING UK Real Estate Income Trust Limited (IRET) / ('Company')

26 August 2010

New Debt Facility Arrangements and Transfer of Assets Offshore - Correction

The following amendment has been made to the 'New Debt Facility' announcement released on 26 August at 07.00 under RNS No. 6537R
 
The LIBOR floating rate should have read 'Based on a LIBOR rate of 0.72%, the day 1 floating rate will be 2.57%.'
 
All other details remain unchanged.
 
The full amended text is shown below.

ING UK Real Estate Income Trust is pleased to announce that following completion of the acquisition of Rugby Real Estate Investment Trust ("Rugby REIT"), it has today entered into intergroup transfer arrangements, such that the Rugby REIT assets will be held within Guernsey domiciled companies and therefore ensuring that they will be held in a more tax efficient manner.  In addition, as previously announced, three assets have exchanged contracts for sale with an aggregate value of GBP 1.68 million.

As a result of the transfer of these assets, the Company has renegotiated the associated debt facility until January 2013, which coincides with the maturity of the existing securitised facility. The new facility is reduced to GBP 21.3 million. The number of charged assets under the facility has also been reduced so that GBP 51.9 million of assets remain charged under the facility with GBP 17.1 million uncharged. 

The prepayment fees payable by the borrower will reduce from 0.50% (if prepayment is made on or prior to 24 August 2011) to 0.25% (if prepayment is made after this but on or prior to 24 August 2012) and nothing thereafter. There is a requirement to hedge at least 50% of the facility amount based on a margin of 185 bps above LIBOR. Based on a LIBOR rate of 0.72%, the day 1 floating rate will be 2.57%.

Following this transaction the Company will have further financial flexibility as a result of the new facility, which will enable it to reinvest proceeds from sales and/or substitute properties.

END

For further information:

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

Guernsey

GY1 3QL

Tel:  [phone]

Fax:  [phone]

ING Real Estate Investment Management (UK) Limited

Helen Stott, 020 7767 5648, [e-mail]

Financial Dynamics

Dido Laurimore/Laurence Jones, 020 7831 3113

 

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