ProLogis European Properties, Europe's largest owner of modern distribution facilities, announced today that Deutsche Pfandbriefbank (formerly Hypo Real Estate) has finalised a three-year extension of the secured bank loan, originally due to mature in March 2010, in line with the announcement made on 23 July 2009.
The loan has been reduced from €151.1 million to €126.0 million, with the difference being repaid with cash from operations.
The €126.0 million loan has been extended to March 2013 and remains secured on a portfolio of 24 Central European properties. The key terms of the extension agreement are at a fixed interest rate of 5.24% per annum, effective immediately, with an initial loan-to-value of 55% and no amortization of loan principal.
Peter Cassells, Chief Executive Officer, said: "This extension represents another important step in our successful debt reduction and refinancing programme. We are delighted to extend our relationship with Deutsche Pfandbriefbank, an existing lender for PEPR, and look forward to working with them in the future. This transaction further demonstrates the attractiveness of our portfolio across Europe and our ability to successfully access the capital markets."