Royal Bank of Scotland has refinanced the circa £550m Airport Industrial Property Unit Trust (AIPUT), managed by Aberdeen Asset Management, with a new five-year £145m debt facility.
The new five year £145m is an extension of an existing facility arrangement with RBS, first entered into in 2010, and involves a revolving element which will allow the fund to facilitate future capital expenditure and acquisition opportunities.
In the intervening period, AIPUT’s portfolio value has increased by circa £150m to £550m, while the debt facility has reduced by £15m to £145m. As a result the blended leverage of the trust is now just above 25%.
AIPUT is a specialist airport industrial warehouse portfolio comprised of prime airport industrial assets in the UK, with a strong focus towards Heathrow Airport. Tenants include global airport-related operators such as British Airways, dnata, Swissport, Gate Gourmet, DHL and UPS.
The refinance exercise follows the successful extension of AIPUT until 2036, and allows the Trust to further extend its activity as a key stakeholder around the UK’s primary cargo focused airports.
In particular, AIPUT has a number of live development projects and opportunities in the pipeline around Heathrow that will enhance the Trust’s market position and strengthen the airport’s international service capability.
Nick Smith, Fund Manager of AIPUT, Aberdeen Asset Management, said: “Establishing stability and managing risk across our portfolio is at the heart of our strategy as we enter 2016. It is testament to RBS’s appetite and understanding of our prime assets that has shaped our successful partnership, and allows us to secure the best returns for the AIPUT investors. The new facility will allow us to seize exciting opportunities over the medium term and meet the strong pipeline of deals across our growing Heathrow portfolio.”
Ralf Koehler, Head of Treasury, Aberdeen Asset Management, said: “AIPUT is a rare offer in the market with an enviable specialist portfolio that translates well globally. The lending expertise of the RBS team combined with the tailor-made financing solution, attractive financing and flexible conditions led to the selection of the bank during Aberdeen´s rigorous selection process.”
Stuart Heslop, Managing Director of Real Estate Lending, RBS, said: “This is a key UK Portfolio of Real Estate assets and we have been working with Aberdeen Asset Management for the last five years on developing the estate. We have a strong commitment to the real estate market in the UK and we look forward to continuing to work alongside Aberdeen on this dynamic portfolio.”
AIPUT was advised by Aberdeen Asset Management’s Treasury Team and Eversheds. RBS Real Estate Finance was advised by Burness Paull.