(Alliance News) - Supermarket Income REIT PLC on Tuesday said it refinanced its existing loan facilities with Bayerische Landesbank with a new three-year GBP86.9 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 GBP86.9 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 GBP2.8 million, which it said was more than fully covered from GBP3.3 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.

By Greg Rosenvinge, Alliance News reporter

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