U+I renegotiates £67m Aviva loan

By James Buckley - Wednesday, October 18, 2017 15:06

U+I Group has renegotiated a £67m loan facility with Aviva to provide the firm with additional working capital to support its investment properties.

The 15-year facility has been extended by four years to provide increased flexibility on substitution and a cost reduction of around 75 bps pa to around 5.25%.

The group announced the extension of the facility in its interim results for the six months ended 31 August, in which it said it was on track to deliver full-year development and trading gains in line with existing guidance.

Specifically, it is on track to deliver £65m-£70m of development and trading gains in FY18, £9.4m of which has been delivered in the year to date.

U+I said £9m-11m of gains are set to be realised at 12 Hammersmith Grove, which is currently 79% let and 17% under offer.

It also said it had made good progress on repositioning its investment portfolio, the valuation of which remained flat during the first half of the year

Matthew Weiner, Chief Executive said: “We are delivering on our targets, realising gains of £9.4 million since 28 February 2017 to date, and we are confident that we can meet our full year target of £65-£70m of development and trading gains for the year. This is supportive of our three-year target to deliver a minimum of £155m of development and trading gains and a 12% post-tax total annual return.

“We are also encouraged with the progress made to reposition our investment portfolio and to reduce overheads. The demand for mixed-use regeneration within communities in London, Manchester and Dublin continues to grow as the pressure on existing housing stock and infrastructure increases. We remain focussed on delivering value through our PPP, trading and investment activities, allowing us to deliver long-term sustainable returns for our investors and social and economic change for the communities in which we work.”

jbuckley@costar.co.uk

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