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News Release

London

SWIP Airport Industrial Property Unit Trust Refinances £160 Million Debt Facility

Jones Lang LaSalle Corporate Finance Advises SWIP


London, 1st December 2010 – SWIP’s Airport Industrial Property Unit Trust (‘AIPUT’) has successfully completed a £160 million refinancing debt facility, sourced and arranged by Jones Lang LaSalle Corporate Finance.
 
The c. £400 million portfolio contains some of the most attractive and prime airport industrial related assets in the UK. The new five year £160 million facility includes a £70 million revolving element which will allow the fund to facilitate future capital expenditure and acquisition opportunities.
 
These arrangements break new ground in the current cycle, where loans of this size have been rare, and flexibility has been difficult to achieve. The all in cost of capital to the borrower is below 4% given current LTV and swap levels.  The loan facility has been provided by Royal Bank of Scotland.
 
The refinance follows a successful equity raise of £113 million carried out in December 2009 by SWIP on which Jones Lang LaSalle Corporate Finance advised. These two transactions mean that AIPUT has successfully navigated the market upheaval of the past two years, and is now a lowly geared, ‘superprime’ fund that offers an attractive investment opportunity for institutional investors seeking industrial exposure.
 
Stuart Heslop, Head of Real Estate Finance at RBS in Scotland said: "We are delighted to have delivered this major refinancing for SWIP on what is a strategically important portfolio of UK Real Estate.  Our teams across the UK are seeing an increasing number of good deals in the market and we are committed to supporting our own customers as well as seeking new opportunities"
 
Nick Ireland, Fund Manager, AIPUT, commented: “AIPUT is a unique offer in the market and we were significantly oversubscribed during the equity raise. The equity raise and debt refinancing has allowed AIPUT to reposition itself as a lowly geared fund with a competitive cost of capital. These twin attributes should enhance performance and enable us to take advantage of opportunities in the medium term.”
 
Barry Osilaja, Director, Jones Lang LaSalle Corporate Finance commented: “Bringing together two major UK institutions has resulted in a transaction that provides our client with an important new banking relationship in a lending climate which is still relatively tough. The debt facility was completed in less than three months and this pace illustrates the increased weight of capital seeking immediate exposure to the UK property market and demand for prime, income producing assets.”