PRS REIT secures £50m of development debt facilities with Barclays Bank
The PRS REIT, the closed-ended real estate investment trust that invests in new-build homes for the Private Rented Sector (PRS), has announced that an additional £50 million of development debt facilities have been approved with Barclays Bank.
This takes the company’s overall debt facilities to £450m.
As the total debt of the company is subject to an absolute maximum, calculated at the time of drawdown of the relevant borrowings, of not more than 45% of the gross asset value, a cap of a maximum of £400m of debt will be drawn down at any one time.
The additional development debt facilities will enable the company to accelerate the delivery of the balance of its development sites as it moves towards completion of its initial portfolio.
Following practical completion of these sites and stabilisation of lettings, the assets will be refinanced using the company’s longer-term investment debt facilities, which are already in place.
Steve Smith, chairman of The PRS REIT plc, said: “We are delighted to welcome Barclays to our banking group in The PRS REIT plc. Barclays’s involvement alongside our other funding partners is testament to the strength of our model, the demand for our product and the Company’s performance and resilience during this difficult period.”