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Supermarket Income REIT PLC on Tuesday said it refinanced its existing loan facilities with Bayerische Landesbank with a new three-year £86.9 million term loan. The real estate investment trust focusing on UK grocery property said the secured, interest-only loan replaces the three existing trances with BLB also totalling £86.9 million. It said the new facility matures in March 2026, priced at a margin of 1.65% above sterling overnight interbank average rate. This has been fully hedged for the term of the facility using an interest rate swap to a fixed rate of 4.29%, including margin. Supermarket Income REIT said the cost of the hedging instrument for the new facility was £2.8 million, which it said was more than fully covered from £3.3 million in proceeds received from the termination of the previous hedging instrument in place for the existing facilities. All of Supermarket Income REIT’s drawn debt is fixed, with a weight average cost of debt of 2.9%. Ben Green, director of Atrato Capital Ltd and investment adviser to Supermarket Income REIT, said: ‘We are pleased to continue our relationship with Bayerische Landesbank which has been a key debt funding partner to the company. Refinancing all of the existing facilities with BLB has allowed the company to extend the term to three years and achieve a competitive cost of finance.’ Shares in Supermarket Income REIT were up 2.5% to 88.80 pence each in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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