Unite diversifies funding with new loan facility

11th Feb 2014 08:53

UNITE Group, which develops and manages student accomodation, has secured a new 10-year, fixed rate debt facility with Cornerstone Europe, a real estate investment manager. The £124m loan, which has extended its average debt maturity to seven years, was secured against four of UNITE's wholly-owned portfolio at 50% loan-to-value. The move has helped the group to reduce the cost of funding and diversify its funding sources by introducing new lenders.Joe Lister, Chief Financial Officer for the UNITE Group, said: "We are delighted to complete this loan with Cornerstone Europe, a new relationship for UNITE. "This transaction builds on the group's success during 2013 and marks the conclusion of our planned refinancing programme, having raised £1.1bn over the last 12 months. We have delivered on our strategy to diversify sources of funds, extend loan maturities and reduce the cost of debt." NR