The Local Shopping REIT, which buys neighbourhood retail parades, has agreed a £60m debt facility.

The REIT expects it will see good opportunities to buy property in the coming months and plans to have the cash in place to take advantage of these opportunities.

The debt facility is £15m less and supersedes its existing £75m facility with HSBC, which was required to be fully drawn by April 2009.

The new facility comprises a £25m term loan and a £35m revolving credit facility, both expiring in October 2016.

The interest rate margin varies depending on the loan to value ratio up to 160 basis points above LIBOR (London Interbank Offered Rate).

As at 5 September 2008, LSR's net debt was £115.5m at an average interest rate of 5.6%.

Mike Riley, joint chief executive, LSR, said: 'Restructuring this loan provides us with greater flexibility in preparation for the opportunities that we expect to arise in the market. We are also very pleased with and encouraged by the continuing support from HSBC in its capacity as our principal bank.'