Shaftesbury Capital has announced it has signed an agreement with Aviva Investors for a new 10-year loan of £200m, secured against a portfolio of assets within the Carnaby estate.
The facility will sit alongside existing secured term loans with Aviva Investors of £130m and £120m, maturing in 2030 and 2035 respectively, which share in the asset security of the Carnaby estate.
As part of the financing agreement, Shaftesbury Capital and Aviva Investors will consider the future inclusion of specific sustainability-related metrics into its terms, ensuring the facility is aligned with Aviva Investors’ Sustainable Transition Loan Framework.
“The proceeds of the Facility will be used to repay in part the £576 million unsecured loan which was drawn in April 2023 to fund the repayment of the Shaftesbury PLC secured bonds. As a result, the weighted average maturity of drawn debt will be extended to 5 years. The weighted average cost of debt will be 4.2 per cent, which reduces to an effective cash cost of 3.3 per cent after taking into account the interest income on cash deposits and the benefit of interest rate hedging.”
Shaftesbury Capital was advised on the facility by Rothschild & Co.
Situl Jobanputra, chief financial officer of Shaftesbury Capital, commented: “We are pleased to have extended our relationship with Aviva Investors through the new long-term financing of £200 million, which enhances the Company’s debt maturity profile and highlights the attractiveness of our exceptional portfolio.”
Gregor Bamert, head of real estate debt at Aviva Investors, commented: “We are delighted to complete our first financing agreement with Shaftesbury Capital, building on our existing and longstanding relationship with the business. We have a strong conviction on well-curated and thriving locations, managed by market leading clients, of which the Carnaby estate and Shaftesbury Capital are both compelling examples.”
