Wednesday, 6 May 2015
Refinancing of German retail portfolio and disposal to joint venture (DE)
Redefine International confirms that it has completed the first part of the refinancing related to the €156.8 mln German retail property portfolio acquired in a 50/50 joint venture with Redefine Properties.
As previously indicated, it was the intention of the joint venture to refinance the existing €100 mln debt facilities acquired on acquisition with a new single facility at current market rates. The joint venture has secured a €83.15 mln facility from Berlin Hyp AG and has initially drawn down €64.93 mln. Total loan break costs of €10.5 mln were settled by the joint venture as part of the initial drawdown. The facility has a margin of 1.20% and an all-in interest rate of 1.58%, assuming the current five year Euro swap rate.
Redefine Properties has agreed to dispose of 12 German retail properties currently owned by Redefine International to the joint venture. The Properties, which have a total value of €16.89 mln, fit well with the profile of the existing portfolio as they also comprise discount retail and mixed use centers, let to well-known German retailers.
Source: FTI Consulting