Dolphin Capital Investors Limited, the leading investor in the residential resort sector in south-east Europe and the largest real estate investment company listed on AIM in terms of net asset value, is pleased to announce that the Board of Directors of a major local bank has approved Dolphin's application for a bank loan facility of 100 million.
The facility amount will be equally divided between the Company's two Advanced Projects in Greece and Cyprus, namely The Porto Heli Collection and Venus Rock Golf Resort. The proceeds will mainly be invested in the construction and development of the first phases of these projects. Some of the proceeds can be used for further land acquisitions in these projects and for refinancing part of Dolphin's invested equity.
The facility will be structured in the form of asset-backed loans secured against certain real estate assets from the respective Dolphin subsidiaries that own The Porto Heli Collection and Venus Rock Golf Resort, and will be non-recourse to DCI. The term of the loan will be 13 years, with a three year grace interest only period. The cost of the loan will be 400bps over six month Euribor and the arrangement fee is 0.5%. The loans will be serviced through the expected returns of the above Advanced Projects.
Legal completion of the loan facility remains conditional on the completion of the customary due diligence on the project companies, the bank's valuation of the underlying assets and legal documentation. Further details on the terms of the loan facilities will be announced in due course.
With the agreement of this loan facility, the first phases of The Porto Heli Collection and Venus Rock Golf Resort are now considered fully funded and are not expected to require any further equity contribution by Dolphin.