Quintain Estates, a London-based regeneration specialist and fund manager, has successfully concluded the refinancing of its 50-50 joint venture iQ, one of the UK's largest student accommodation providers.
The new debt facility, worth £157.75m, will replace the fund's original five-year senior debt facilities with HBoS and Fortis, which would have matured this summer.
A five year £115m senior debt facility has been secured with M&G Investments on nine of the iQ's 12 completed buildings at 290 basis points (bps) margin, while Deutsche Postbank has agreed a five-year £42.75m facility, secured by the fund's remaining three completed assets at a margin between 275bps and 300bps. There are 100 bps to a full percentage point.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The iQ portfolio currently extends to more than 4,500 bedrooms and has forward lettings of 57% for the 2012/13 academic year, which is above the level achieved at the same point last year.
The share price rose 3.29% to 39.25p by 11:07.
NR
