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(Alliance News) - Berlin real estate-focused investment firm Phoenix Spree Deutschland Ltd said Thursday it has completed a new EUR240 million term loan facility, agreed with Natixis Pfandbriefbank AG.
The facility comprises two tranches one being for EUR190 million and the other for EUR50 million.
The EUR190 million tranche is a refinancing facility, a seven-year, interest-only loan which was used to refinance existing indebtedness of up to EUR119 million. The remainder of the facility will go towards funding working capital.
The remaining EUR50 million will be available for drawdown over a period of 24 months, and carries a commitment fee of 57.5 basis points. The drawn amounts will be subject to the same terms as the refinancing facility.
In addition, Phoenix Spree noted that the Berlin Ministry for Housing published the draft law on its proposed rent cap. A consultative process is now underway, following which a Berlin senate resolution will take place in mid-October, and the implementation of the new rules expected in January 2020.
Phoenix Spree said it remains of the view that the rent proposals are unconstitutional.
"We are delighted to have formed a new relationship with Natixis and to have secured a new credit facility which provides the Company with more flexible and cost-efficient financing and provides sufficient liquidity in order to take advantage of opportunities that may arise from the current regulatory uncertainty," said Chair Robert Hingley.
Phoenix Spree Deutschland expects to report its interim results at the end of September.
Shares in Phoenix Spree Deutschland were up 0.2% at 285.0 pence on Thursday.