Shaftesbury Capital has signed an agreement with Aviva Investors, the global asset management business of Aviva plc, for a new 10-year loan of £200m.

The facility has been secured against a portfolio of assets within the Carnaby estate, and will sit alongside the 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.

Shaftesbury confirmed that the additional financing has been priced in reference to 10-year UK gilt yields. When blended with the existing Carnaby term loans, the annual cash interest rate in respect of the overall amount of £450m of secured term loans with Aviva Investors will be 4.7%.

As part of the financing agreement, Shaftesbury and Aviva Investors will consider the future inclusion of specific sustainability-related metrics into its terms, ensuring that the facility is aligned with Aviva Investors’ sustainable transition loan framework.

The proceeds will be used to repay in part the £576m 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 five years, while the weighted average cost of debt will be 4.2%, which reduces to an effective cash cost of 3.3% after considering the interest income on cash deposits and the benefit of interest rate hedging.

Shaftesbury Capital chief financial officer, Situl Jobanputra, commented: “We are pleased to have extended our relationship with Aviva Investors through the new long-term financing of £200m, which enhances the company’s debt maturity profile and highlights the attractiveness of our exceptional portfolio.”

Head of real estate debt at Aviva Investors, Gregor Bamert, added: “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.”

Share Story: