Affinity agrees £16.2m Facility Agreement with ICG-LongbowPosted on 13th March 2018
Affinity are pleased to announce it has completed a new £16.2m loan facility from ICG-Longbow. ICG-Longbow (the real estate debt division of Intermediate Capital Group plc) are a premium listed investment company on the London Stock Exchange. The company specialises in UK real estate debt, predominantly comprising of loans secured by first ranking fixed charges against Commercial Property investments.
The loan, which is secured by a first mortgage over our commercial asset in Bristol, comprises an initial advance of £14.2 million, at an LTV ratio of 67.3%, together with a committed £2.0 million capital expenditure facility. The loan matures in May 2022.
The loan is secured against The Spectrum Building, a high quality, 114,346 sq ft glass clad five storey office building that Affinity acquired in March 2016. The property is located in Bristol, the economic hub of the South West region with excellent labour availability, education resources and connectivity.
Since taking ownership, Affinity has employed a number of value add strategies to enhance the property and increase the yield and also the valuation. We have increased occupancy from just over 50% to over 90%. The asset now represents an 8.27% Net Initial Yield and a current valuation of £21.6m (JLL, September 2017).
With the additional capital expenditure facility now at our disposal we can further enhance the proposition at the Spectrum Building and get occupancy to 100% fully let.