The Pension Insurance Corporation (PIC) has completed a £100m debt investment with The National Trust to improve and conserve properties across the UK.
The transaction includes two tranches of £50m which are deferred until 2020 and 2022 to match The National Trust’s requirements. The debt matures in 2063 as a 40-year-plus term matches PIC’s pension liability cash flows, the insurer said in a statement.
The loan will be invested in the maintenance of existing buildings and heritage assets to ensure they are conserved for future visitors.
PIC’s debt origination manager Marno Jooste said: “The private nature of the transaction means we were able to develop a maturity profile which isn’t readily available through the public markets and suits the trust’s funding objectives, including developing and improving a range of visitor facilities.”
Projects likely to benefit from the £100m investment include Dyrham Park, South Gloucestershire, Charlecote Park, Warwickshire, and the Buscot and Coleshill estate, Wiltshire. These areas are in need of improved infrastructure as well as facilities such as toilets, receptions and parking.
The National Trust, which aims to protect UK’s heritage and open spaces, looks after 780 miles of coastline, over 248,000 hectares of land and more than 500 historic houses, castles, ancient monuments, gardens, parks and nature reserves. These areas saw 26.6 million visitors last year.
“We look forward to improving our visitor facilities with this much needed investment so that people across the country can continue to enjoy the rich history of our land and properties,” The National Trust CFO Peter Vermeulen said.
“We are pleased to have worked with PIC on this transaction. The team has extensive experience in structuring innovative, flexible deals and are well respected investors.”