Frasers Commercial Trust inks term loan facility of £88 million

FRASERS Commercial Trust (FCOT) has entered into an agreement for a transferable term loan facility of £88 million (S$161 million).

This agreement between the real estate investment trust's (Reit) trustee, British and Malayan Trustees Limited, and DBS Bank Ltd is for a term of six months from the date of first draw-down of the loan facility, said its Reit manager Frasers Centrepoint Asset Management (Commercial) Ltd.

The facility is unsecured and will be primarily used to finance the purchase consideration for the acquisition of a 50 per cent interest in Farnborough Business Park in the UK by the Reit, and related fees, costs and expenses.

FCOT and its sponsor Frasers Centrepoint Limited (FCL) had said last month that they have agreed to jointly acquire Farnborough Business Park in the UK for £174.6 million.

The 46.5 ha freehold business park comprises 14 commercial buildings with a total net lettable area of about 555,000 sq ft located in Thames Valley, west of London.