Yesterday, Gewerbesiedlungs-Gesellschaft mbH (GSG) signed the final loan agreement granting 269.6 million from a club of five German banks. The new loan agreement serves to refinance the outstanding loan, which GSG has with The Royal Bank of Scotland plc. (RBS), amounting to 281.9 million.
ORCO Germany S.A., the parent company of GSG, will cover the remaining 12.3 million.
With this important step GSG remains within the timeline disclosed in summer. The transaction is expected to be closed by the end of 2012.
The new loan has a term of five years and a lower interest service than the initial RBS loan. It also includes a minimum capex spending commitment as well as quarterly amortization, which will reduce the company`s LTV based on the current company valuation to approximately 55% in 2017.
"By signing this new loan, we have secured the refinancing of GSG. Now, we are able to focus completely on extracting the operational and development potential of our property portfolio in Berlin", says Oliver Schlink, Managing Director of GSG.
Source: Orco Germany