Life Science REIT refinances with £26.3 million drawdown from HSBC loan

By Marisa Wong

Los Angeles, March 3 – Life Science REIT refinanced its existing £35.9 million asset level development debt facility, which was acquired with the company’s Oxford Technology Park, by drawing down £26.3 million from its existing £150 million HSBC facilities as well as utilizing existing cash resources, according to a press release.

The company’s development debt facility acquired with Oxford Technology Park carried a high interest rate and had an expiry date of June 2023.

The HSBC facilities include a £75 million fully drawn term loan capped at a maximum cost of 4.25% per annum until March 2025 and a £75 million revolver with a cost of Sonia plus 225 basis points.

Following this refinancing £48.7 million remains available in the revolver for future use, and the company’s look forward and blended interest cost is expected to reduce by about 100 bps.

The additional drawdown is secured against the company’s acquisitions at Herbrand Street in London, Lumen House near Oxford and the Merrifield Centre in Cambridge. The company’s asset at OTP is now unsecured and available for alternative use in its future debt management strategy.

The pro-forma gross loan to value after the refinancing, based on the last reported property portfolio valuation at June 30, 2022, is 24.5%.

The real estate investment trust focused on U.K. life science properties is based in London.

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