PRS REIT PLC on Monday said it has agreed to a new revolving credit facility with the Royal Bank of Scotland PLC and Lloyds Banking Group PLC.
The Manchester, England-based real estate investment trust said the £150 million RCF was due to mature in February this year, but was extended to mid-July.
PRS REIT secured a £102 million facility of fixed rate debt with a £75 million floating rate debt for two years, adding it will immediately deploy around £115 million of total debt. PRS REIT now has fixed long term debt facilities of £352 million, with an interest rate of around 3.8%.
A cap will be put in place on the floating debt to hedge against rising interest rates.
The fund will deploy around £115 million of the total debt to fund the already completed sites. The remaining £62 million will be drawn down to fund sites being completed before the start of 2024.
The company also said on Monday its portfolio of completed rental homes continues to perform well, with occupancy at 97%, and rent collection at 100% for the 11 months to May 31. Like-for-like rental growth in the 12 months ended May 31 was around 6.5%, up from 5.7% a year prior.
Shares in PRS REIT were down 0.2% at 80.69 pence each in London on Monday morning.
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