IVG Immobilien AG has achieved two important steps in its efforts to realign its financial structure.
In a binding agreement with the current syndicate banks, the existing financing for the project THE SQUAIRE at Frankfurt Airport was extended in its present volume by more than two years through the end of 2013. The term of this financing arrangement was synchronized with the exit strategy currently planned for THE SQUAIRE.
IVG intends to put this extraordinary 660-m-long landmark property with around 140,000 m² in lettable office, hotel, and retail space on the market in 2013, by which time the building is expected to be fully occupied.
The financing volume and the loan-to-value ratio after completion remain unchanged at 500 million and around 62%, respectively. Also, the financing costs have remained unchanged in conjunction with the rollover.
In a parallel deal, IVG signed a loan agreement for 35 million for funding the multi-story car park THE SQUAIRE Parking with a German Landesbank. This financing, too, will reach its planned maturity at the end of 2013. The binding all-in financing of this project, which contributes considerable value-add to the project of THE SQUAIRE as a whole, is thus securely in place as well.
Source: IVG Immobilien AG