Urban Shelter Limited, USD11.3 million Refinance Facility

Mar 31, 2019

Stanbic IBTC Capital acted as mandated lead arranger of a USD11.3 million medium term refinancing facility to Urban Shelter Limited for the development of the Drake Estate which is wholly occupied by the American Embassy.

Urban Shelter Limited is a leading property development corporation based in Abuja, Nigeria. This refinancing facility was secured for a residential consular quarters which would be occupied by Embassy staff.

Stanbic performed other ancillary roles as well such as agent bank, account bank, security trustee, hedge bank, and insurance broker which resulted in end-to-end financial services capabilities.

Stanbic successfully leveraged the expertise and experience of other entities within the Stanbic IBTC Group to ensure the seamless execution of the transaction.

Urban Shelter has over 25 years of experience in integrated property development and management, and has successfully delivered over 1 800 residential units in Abuja.

It has a diversified portfolio of ongoing projects and reputable completed residential projects in Abuja, Lagos and other key commercial nodes in Nigeria.

Notable developments that have been completed by Urban Shelter include the Garki Ultra Modern Market, The Evergreen Residences, Lake View Estate and the Drake Estate.

This transaction was a hybrid of real estate finance and a corporate lending structure.

Key structural elements in the transaction was the ability to refinance the borrower and asset on the back of a 3rd party lease arrangement.

The financing terms provided the client with an opportunity to optimise its assets and balance sheet given the ring-fenced nature of the transaction.

The yearly rental payments are collected in USD which serves as a natural hedge against Naira devaluation.

The transaction demonstrated Stanbic’s ability to structure, coordinate and execute innovative financial solutions for clients. It also underpins their status as the go-to bank for indigenous real estate clients looking to advance their business interests.

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