6th May 2015 07:03
LONDON (Alliance News) - Redefine International PLC Wednesday said it has now completed the first part of the EUR100 million debt refinancing related to the EUR156.8 million German retail property portfolio acquired in a joint venture with Redefine Properties, and also sold some of its own German retail properties to the venture.
It said it has secured a EUR83.2 million facility from Berlin Hyp AG and has initially drawn down EUR64.9 million. Total loan break costs of EUR10.5 million were settled by the joint venture as part of the initial drawdown. The facility has a margin of 1.20% and an all-in interest rate of 1.58%, assuming the current five-year Euro swap rate. It has no amortisation and matures in May 2020.
The joint venture had wanted to refinance the existing EUR100 million debt facilities that came with the acquisition with a single facility at current market rates.
Simultaneous to the refinancing, Redefine International said it has reached an agreement with Redefine Properties to dispose of 12 German retail properties with a value of EUR16.9 million currently owned by Redefine International to the joint venture. It said the properties fit well with the German portfolio as they also comprise discount retail and mixed use centres.
By Steve McGrath; [email protected]; @stevemcgrath1
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