International law firm, Trowers & Hamlins, has advised longstanding client, Urban Logistics REIT plc, on the refinancing of an existing £151m debt facility into a new £190m facility and the deployment of the resulting capital into the acquisition of a series of four last mile logistics assets for a total purchase price of £42.2 million.
The debt facility was provided by Barclays, Santander and ING and was structured as a £140m term loan supported by a £50m revolving credit facility. The refinancing delivers an attractive fixed rate and provides a significantly reduced margin and improved debt covenants for Urban Logistics REIT which has created immediate earnings per share accretion.
The new acquisitions were completed at a blended NIY of 6.6% with potential to enhance returns and deliver Urban Logistics' investment objectives through active asset management.
The refinancing was led by Eddie O'Hanrahan and Jon Grosvenor in our Banking and Finance team, with Real Estate support led by Ben Neary and Construction support led by Claire Atkins.
The acquisitions work was led by Dwynwen Lewis, client partner for Urban Logistics, who commented:
"We are delighted to have supported Urban Logistics on these successful transactions and their continued growth as a leading player in the industrial and logistics sector. We have a long established relationship with the team at Urban spanning over a decade which streamlines these transactions as we know their position well. This was another partnership effort throughout and we look forward to continuing adding value with the team in the implementation of the asset management strategy which is already underway."
Justin Upton, Chief Investment Officer at Urban Logistics REIT commented:
"We are delighted to have worked again with the combined property and banking teams at Trowers to successfully complete and extend the group debt facility, at the same time drawing down £42.2m to acquire earnings accretive assets for the REIT. This re-financing of the existing facility is highly competitive in the current environment and provides balance sheet security going forward. Once again the professional but practical approach from our legal teams ensured a smooth and timely outcome on both re-finance and investment."
The deal's success was a result of a firm wide, national team effort from Trowers' Real Estate; Banking & Finance; Planning; Tax and Construction teams.
