WELPUT Completes Major Debt Refinancing
1 June 2018
WELPUT, the specialist Central London real estate fund managed by Schroder Real Estate and advised by Grafton Advisors, has completed a refinancing with Wells Fargo totalling £140 million.
The new seven-year facility is split between a £50 million term loan and a £90 million Revolving Credit Facility (RCF) and refinances a £65 million facility with MetLife. The refinancing supports WELPUT's strategic objectives by reducing the overall cost of debt and providing increased capacity to take advantage of new asset management and investment opportunities as they arise.
The new loan adds to the existing £235 million loan agreed with Wells Fargo in 2015, which matures in 2022. The combined facilities provide WELPUT with a total debt capacity of £375 million, split between a £150 million term loan and £225 million of revolving credit facility.
Jourdan Rajwan, Investment Manager, Schroder Real Estate, comments: "We are delighted to have secured a new loan with Wells Fargo who are a long-term and supportive lender to WELPUT. WELPUT is well positioned following recent disposals with a relatively low loan to value of 23 per cent. The new facility provides additional firepower to invest in the portfolio and take advantage of market opportunities as they arise.”
Ker Gilchrist, Property Director at Grafton Advisors, adds: “Given the nature of WELPUT’s active portfolio, this puts us in a great position to continue to progress our refurbishment and development pipeline, particularly with Regents Wharf in Kings Cross.”