Invista is pleased to announce the successful extension of the debt facility of the Invista Celsius JV, and amendments to the asset management agreement for Celsius European Holdings Sarl ("Celsius") at an increased fee level.
Celsius is a well let portfolio comprising 11 office and industrial properties located in Ile-de-France and regional France. The portfolio's income is secured from strong covenants with over 63% generated by Carrefour the leading French hypermarket group and Areva, the state controlled French power company. The portfolio is held in a 50/50 joint venture.
Asset management agreement
Invista has agreed a two-year extension to the existing asset management agreement, expiring in September 2011, on a revised fee basis which is more than twice the previous amount.
Extension to debt facility
Invista has successfully refinanced the Celsius joint venture by extending the existing senior debt facility with Kaupthing Bank hf for a further two years, on the same terms.
As previously advised Invista continues to hold its investment in Celsius at £0.
Commenting, Duncan Owen, CEO of Invista Real Estate, said: "The extension of the existing debt facility is a good result for Invista and our joint venture partner, as well as for the lender. It provides stability and longevity for the joint venture, enables asset management initiatives to continue to be implemented and demonstrates the strength of relationships between the joint venture and the lender, Kaupthing Bank hf.
"The new asset management contract is a reflection of the understanding and expertise Invista delivers to the active management of the portfolio which will continue to be led by our Paris office. Having already completed new leases on over 44,750 m², reducing vacancy by 23% and re-structuring the key Carrefour leases, we look forward to continuing to employ a strategy to protect and maximize the value of the portfolio."