Last checked at 10 Dec 2009 07:00
10 December 2009
China Real Estate Opportunities plc obtains refinancing for Shanghai's Treasury Building
China Real Estate Opportunities plc ("CREO" or the "Company"), is pleased to announce the completion of a loan facility for a multi-currency three year loan equivalent to £27.72 million (US$37.8 million offshore loan plus RMB50 million onshore), based on current exchange rates, with CITIC Ka Wah Bank in Hong Kong. This new loan facility, the terms of which were previously announced in August 2009, will replace the existing €18.8 million and RMB97 million loan (equivalent to £25.80 million) CREO has in regard to the Treasury Building in Shanghai with Credit Suisse which was due to expire in March 2010.
Under the final terms, CREO will benefit from significantly lower interest costs as the new loan facility reflects an interest rate of 3.50% over the designated base rate for the foreign currency component and a total interest rate of 6.37% for the RMB portion. The blended rate currently equates to approximately 4.20% per annum compared to the average cost of funds of more than 6.75% for the current loan.
Ray Horney, CREO Chairman commented, "We completed the Treasury Building refinancing on extremely competitive terms due to interest from a number of local and regional banks in this asset and are naturally very pleased with the outcome which clearly shows that Asian banks are still open for business and that quality, well-managed assets will always be able to source competitive financing.".
Contact:
China Real Estate Opportunities plc
Ray Horney, Chairman
Tel: + 44 (0) 1273 775 225
Sarah Moriarty, Investor Relations
Tel: + 353 1 618 9455
Matrix Corporate Capital LLP
Paul Fincham
Tel: + 44 (0) 20 3206 7000
Davy
Des Carville
Tel: + 353 1 679 6363
Citigate Dewe Rogerson Limited
Tom Baldock (London)
Tel: + 44 (0) 20 7638 9571
Charlotte Bilney (Hong Kong)
Tel: +852 2533 4620
Murray Consultants
Ed Micheau
Tel: + 353 1 498 0300