FOR IMMEDIATE RELEASE
24 February, 2009
ING UK Real Estate Income Trust Limited
("ING REIT" or the "Company")
Proposed restructuring of the Company's Securitised Loan Facility
The Company announces that it is seeking to amend several of the covenants in its Securitised Loan Facility. To that end, a meeting of the Noteholders has been convened for 18 March 2009 to consider the proposed amendments.
The principal proposed amendments are summarised below, but shareholders should note that Standard & Poor's and Fitch, as required by the underlying documentation, have both confirmed that the 'AAA' rating of the notes issued in relation to the Securitised Loan Facility will be maintained if the covenants are amended following approval by the Noteholders.
Summary of the principal proposed amendments to the covenants
Increase the loan-to-value covenant from 50 per cent. to 60 per cent. until January 2012, when it will reduce to 55 per cent., falling back to 50 per cent. in July 2012;
Increase the interest cover ratio from 1.5 times to 1.75 times until maturity of the Securitised Loan Facility in January 2013;
Increase the loan-to-value ratio at which level cash (other than rent) can be released from the Securitised Structure and passed to the Company from 35 per cent. to 50 per cent.;
Reduce the Company's flexibility to make non-core investments, residential investments and undertake developments or major upgrade projects within the Securitised Loan Facility; and
Remove the Company's ability to hold indirect property investments within the Securitised Loan Facility for the purpose of the various financial covenants.
The Board has already undertaken a number of initiatives to manage the business during this period of market volatility. The Company repaid £82 million of debt in 2008, following an asset disposal programme as well as reducing its dividend to ensure it is fully covered by earnings.
The Board believes that the implementation of the amendments to the Securitised Loan Facility, if approved by the Noteholders, together with the activities already undertaken, will strengthen the Company's ability to withstand market conditions. Further information on the detailed changes and the documents sent to Noteholders will be available on the Company's website - www.ingreit.co.uk
The Noteholder meeting has been convened for 18 March 2009 and the Company will provide a further update to shareholders following that meeting.
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
St Peter Port
Tel: 01481 745439
Fax: 01481 745085
ING Corporate Finance and ING Real Estate Finance are acting exclusively for the Company and no one else in relation to the matters described in this announcement and will not be responsible to anyone other than ING REIT for providing the protections afforded to clients of ING Corporate Finance and ING Real Estate Finance or for giving advice in relation to this announcement or any transaction or arrangement referred to herein. ING Bank N.V., London Branch is authorised by the Dutch Central Bank. ING Bank N.V., London Branch is regulated by the Financial Services Authority for the conduct of business in the United Kingdom.
This announcement does not constitute an offer or form any part of any offer or invitation to sell or issue or purchase or subscribe for any shares, notes or other securities in ING REIT.