ICG-Longbow announces loan to bungalow housing company RoyalLife

ICG-Longbow announces loan to bungalow housing company RoyalLife – ICG-Longbow Senior Secured UK Property Debt Investments (LBOW) has entered into a new £24.6m loan commitment to an affiliate of RoyaleLife, a UK-based provider of bungalow homes. The trust is participating in a larger £142.7m loan facility alongside two other funds managed by the manager. 

The loan will refinance a portfolio of 10 assets in the residential bungalow homes sector.  It carries a four-year term and has an initial LTV ratio of 78.9%.  Day 1 drawings on the loan will be approximately £20.3m, with the company also providing a committed capital expenditure facility in support of the borrower’s business plan.

The RoyaleLife loan will see LBOW’s pro forma weighted average interest coupon rising to 7.06%.  In addition, the loan contains significant contracted exit fees. On completion, the fund adds that its total invested capital will be £112.5m with undrawn follow-on commitments of £10.3m.  Portfolio LTV will be 62.5% with a weighted average loan duration of approximately 2.1 years.  

About LBOW

LBOW’s objective  is to construct a portfolio of UK real estate debt related investments predominantly comprising loans secured by first ranking fixed charges against commercial property investments, with the aim of providing shareholders with attractive, quarterly dividends, capital preservation and, over the longer term, a degree of capital appreciation.

LBOW: ICG-Longbow announces loan to bungalow housing company RoyalLife


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