Warehouse REIT : £220 million institutional refinancing

RNS Number : 7943A

Warehouse REIT PLC

24 January 2020

24 January 2020

Warehouse REIT plc

(the 'Company' or 'Warehouse REIT')

Warehouse REIT increases headroom with £220 million institutional refinancing

Warehouse REIT, the AIM-listed specialist warehouse investor, announces that it has entered into a new five year £220 million debt facility, to replace the exis ng HSBC facility totalling £210 million. The refinancing, which comprises a £157 million term loan and a £63 million Revolving Credit Facility, has been agreed with a club of lenders consis ng of HSBC, Barclays, Bank of Ireland and Royal Bank of Canada. The facility is at a margin of 2% per annum above LIBOR, represen ng a 14bpts saving compared to the previous blended rate. The new facility provides a five year term and includes an op on to extend the dura on by a further two years, subject to lender consent. The current HSBC facility expires, in part, in March 2020 and the majority in November 2022.

This new facility not only extends the term and reduces the margin, but also increases Warehouse REIT's total debt facili es from £210 million to £220 million, together with an accordion of a further £80 million whilst maintaining the LTV covenant of 55%. Alongside paying down the previous facility, the debt provides the Group with extended firepower over current drawings to support opera onal flexibility, deliver further por olio ini a ves and give wider scope for new investments.

Based on drawn Group net debt of c. £184 million (as at 30 September 2019), Warehouse REIT's pro forma all in cost of debt will reduce from 2.14% blended to 2.00%. Debt maturity will increase from a maximum of two years to five (or seven years if the two one-year extensions are applied). At current drawings, the Group is 30% hedged by way of two caps at a blended rate of 1.625%.

Andrew Bird, Managing Director of Tilstone Partners Limited, commented: "This long term facility, secured from a high quality club of lenders, further strengthens the Company's balance sheet and provides greater flexibility to implement the ac ve programme of por olio management and take advantage of the a rac ve acquisi on opportuni es that the team con nues to source in the market, underpinned by solid occupa onal demand. We now move forward with a highly competitive cost of debt and an attractive debt maturity profile."

Savills Debt Advisory team acted for Warehouse REIT on this transaction.

-ENDS-

Enquiries

Warehouse REIT plc

via FTI Consulting

Tilstone Partners Limited

[phone]

Andrew Bird

G10 Capital Limited (part of the Lawson Conner Group), AIFM [phone]

Maria Glew, Gerhard Grueter

Peel Hunt (Financial Adviser, Nominated Adviser and Broker) [phone]

Capel Irwin, Harry Nicholas, Carl Gough

FTI Consulting (Financial PR & IR Adviser to the Company)

[phone]

Dido Laurimore, Ellie Sweeney, Richard Gotla

Further information on Warehouse REIT is available on its website:

http://www.warehousereitplc.co.uk

Notes to editors:

Warehouse REIT is an AIM listed UK Real Estate Investment Trust which owns and manages a diversified por olio of UK warehouse assets located in urban areas.

Occupier demand for urban warehouse space is increasing as the structural growth in e-commerce has driven the rise in internet shopping and investment by retailers in the "last mile" delivery sector. The urban warehouse sector continues to be projected to be the best performing of all UK property sectors.

The Company is an alterna ve investment fund ("AIF") for the purposes of the AIFM Direc ve and as such is required to have an investment manager who is duly authorised to undertake the role of an alterna ve investment fund manager. The Investment Manager is G10 Capital Limited.

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