AIPUT secures additional £55 million credit facility to pursue airport real estate
acquisitions in London
[London: 18 April 2019]: Aberdeen Standard Investment’s AIPUT fund (Airport Industrial Property Unit Trust) has secured a £55million revolving credit facility with its long-term financial partner, RBS International. The facility will provide flexible access to capital available to finance AIPUT’s high quality industrial acquisitions and development projects at the London airports. Strategic opportunities are expected to surface in the months ahead as a result of the uncertainty engendered by Brexit and the perceived political risk of continuing friction in global trade policy.
AIPUT, a specialist airport real estate fund managed by Aberdeen Standard Investments, holds a diverse portfolio of air cargo and other airport-related property assets serving the London airports of Heathrow, Gatwick and Stansted. The overall fund value currently stands at around £670 million.
The three principal London airports dominate UK air-traffic activity, processing over 154m passengers and 2 million tonnes of air freight in 2018.
The new £55 million revolving credit facility supplements an existing £145 million debt facility made available in 2015. AIPUT has a successful ongoing relationship with RBSI stretching back to 2010.
Commenting on the deal, AIPUT Fund Manager, Nick Smith, said: “The new credit facility adds to AIPUT’s considerable capital resources, enabling us to respond quickly to targeted investment opportunities that meet our growth and diversification objectives.
“As a market leader, we are driven to deliver greater choice, flexibility and value to our customers, positioning ourselves to capture an expected new wave of airport-related industrial demand. With a portfolio close to full occupancy, we are keen to secure the sites and develop the floorspace necessary to help London’s airports enhance their global competitive positions.”
Alison Freshwater, of Global Private Markets & Real Estate Structuring at Aberdeen Standard Investments, commented:
“We are very fortunate to have a long standing and strong relationship with RBSI, who work collaboratively with us to offer pragmatic and tailored lending solutions which deliver the best value for our investors.”
Jamie Bennie-Coulson, Director of Real Estate at RBS International, added:
“This is an award winning fund with high quality assets that is managed by a top tier investment manager so we’re delighted that we’ve been able to support AIPUT by increasing their debt facilities. This increase will help support the fund and its aspirations whilst demonstrating our continuing commitment to the UK real estate market.”
The fund had acted in recent months to further reinforce its financial war chest through the disposal of real estate holdings at Glasgow and East Midlands airports, further increasing the resources available for further investment relating to London’s airports.