The shopping center investor Deutsche Euroshop has refinanced two loans worth over 10years. The firm has entered into a new loan agreement that includes a €50 million loan to be extended in October 2009 as well a €82.2 million loan not due until 2013.
The lender is Deutsche Genossenschafts-Hypothekenbank AG (DG HYP), which will replace the previous creditor banks. The collateral for the loan is the Rhein-Neckar Zentrum in Viernheim, in which Deutsche EuroShop owns a 99.9% interest.
"This refinancing will reduce our annual interest payments by over €1 million," said Olaf Borkers, the Chief Financial Officer for Deutsche EuroShop. "The average remaining life of our loans will rise to about eight years. We will not have to renegotiate any more long-term debt financing until the end of 2012," he continued.