22nd Sep 2014 14:03
LONDON (Alliance News) - Mirland Development Corporation PLC Monday said its subsidiary Petra 8 LLC has entered into a new loan agreement worth up to USD87 million with Sberbank of Russia to finance the fourth phase of its Triumph Park residential development in St Petersburg, Russia.
Mirland said the loan will provide around 75% of the expected fourth phase construction cost with the balance financed from sale proceeds.
The fourth phase of the development consists of 1,244 apartments. The total net sellable area of the phase is approximately 60,600 square metres with approximately 1,300 square metres of commercial space. Physical completion of the fourth phase is scheduled for 2017.
Marketing is currently underway for phase two and three of the project with total sales proceeds to date of USD150 million.
The company said the loan will be provided to Petra in tranches over the next three years, and will be secured by way of mortgage, charge, pledge and other appropriate security interests for the benefit of the bank and entered into by Petra and Mirland.
The loan principal will be available for 35 months and the Loan will mature in four years.
Mirland also said the loan bears a fixed Rouble annual interest rate of 11.9% and is to be paid quarterly, in addition to other fees set out in the loan agreement, and is in addition to three facilities previously granted by the Bank to Petra, the outstanding balance of which, to date, is approximately USD5 million.
Mirland Development shares were quoted flat at 230.00 pence Monday afternoon.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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