19th Jan 2015 09:19
LONDON (Alliance News) - Summit Germany Ltd Monday said it has signed a binding term sheet with a German bank for the financing of 9 of the 11 properties the company bought back in April 2014.
In a statement, the company said the deal is for a EUR33 million, seven-year facility, at an interest rate of 2.1% a year and an amortisation rate of 3% a year. It said the loan will bear "customary covenants". Of the total loan, EUR2.5 million is subject to the extension of some leases.
Summit regained full control of the portfolio of mainly office buildings last April when it bought a loan facility on the 11 properties for about EUR45.5 million. The properties covered by the refinancing have a lettable area of 58,000 square metres, have multiple tenants, an occupancy rate of 91% and an annual rent income of EUR5.6 million, the German commercial real estate company said Monday.
The company expects to complete the refinancing next month.
Summit Germany shares were up 0.9% at 0.772 pence in London Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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