The award-winning specialist owner and manager of industrial property on and near major UK airports, Aberdeen Standard Investment’s AIPUT fund (Airport Industrial Property Unit Trust), has secured a £55 million revolving credit facility with its long-term financial partner, RBS International.
As of March 2019, the fund’s overall value stood at around £670 million, with AIPUT holding a diverse portfolio of air cargo and other airport-related property assets serving London Stansted, as well as Heathrow and Gatwick. Combined, the three airports processed over 154m passengers and two million tonnes of air freight in 2018.
With all the uncertainty around Brexit and the perceived political risk of continuing friction in global trade policy, the facility will provide flexible access to capital to finance AIPUT’s industrial acquisitions and development projects at all three London hubs.
“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,” said Nick Smith, AIPUT fund manager.
The new £55 million revolving credit facility supplements an existing £145 million debt facility made available in 2015.
“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,” continued Smith.
Meanwhile, 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 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.