The facility is interest only and fixed at 3.196% pa and secured against a portfolio of the company’s operating assets.

Upon drawdown of the new facility, Empiric’s debt servicing costs on the refinanced debt will be reduced and the company’s average debt maturity profile across all facilities will extend to eight years.

Some £30.6m of the facility will be drawn in the near term, with the remaining £55.5m expected to be drawn towards the end of October 2019.

Both drawdowns will come at the expiration of each term of the existing debt facilities so that the company does not incur any break fees.

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Lynne Fennah, chief financial and operating officer at Empiric Student Property (pictured above), said that it was pleased to have agreed terms on its new long-term debt facility with Scottish Widows at an attractive rate.

“The benefits of our new £86.1m facility include reducing the company's debt servicing costs on the refinanced debt and the extension of the company's average debt maturity profile across all facilities."

Duncan Smith, director of Scottish Widows Loan Investments, added: “As part of Scottish Widows’ commitment to support all forms of UK housing, we are pleased to provide Empiric with a long-term debt facility, arranged through our partnership with Lloyds Bank Real Estate and Housing. 

“The funding is secured against premium student accommodation in a range of key UK university cities and has been structured to meet the client's specific refinancing requirements.”