LONDON (Alliance News) - Hansteen Holdings PLC on Wednesday said it has refinanced two loans secured against its Netherlands light industrial property portfolio into a single loan totalling EUR145.0 million, reducing the cost of borrowing on the portfolio.
The FTSE 250-listed real estate investment trust said it has refinanced its EUR80.0 million loan with FGH Bank NV and its EUR57.8 million loan with ING Bank NV, with a single new EUR145.0 million five-year facility provided by ING Bank NV and various entities managed or advised by real estate investment manager AXA REIM SGP.
Previously the EUR80.0 million loan had been due for repayment in April 2017 and the EUR57.8 million loan due to repayment in June 2019, Hansteen said.
Hansteen said the loan-to-value ratio of new facility is 48% with hedging against 66% of the loan, which results in an interest cost of 2.49% per year, excluding fees. The cost of borrowing from the previous two facilities had been 3.57%. The lower interest rate will save EUR1.3 million per year.
"It is a testament to the growing interest in the Dutch light industrial sector, and to our business model, that we have been able to refinance this portfolio on such competitive terms. The new loan is significantly earnings enhancing as the cost of borrowing will reduce by ?1.3 million per year. In addition the debt maturity profile has been extended from 1.69 years to 5 years," said Hansteen's Europe Director Paul Rodger.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
