Hamburg-based Alstria office REIT has completed two debt financings of about EUR 80 mln, of which EUR 59 mln is being used to repay the company's main syndicated loan.
Hamburg-based Alstria office REIT has completed two debt financings of about EUR 80 mln, of which EUR 59 mln is being used to repay the company's main syndicated loan.
The remaining EUR 21 mln will be used for the funding of the ongoing development of one property in Hamburg, Alstria said. Alstria is an internally managed Real Estate Investment Trust (REIT) which is solely focused on acquiring, owning, and managing office real estate in Germany.
The company said the new credit facilities are secured on a non-recourse basis, one by a vacant asset in Hamburg and the other by a portfolio of four assets located in Hamburg, Potsdam, and Magdeburg with an average lease term of 7.3 years. The two loans have a respective maturity of three and five years. The average spread on both loans stands at around 150 basis points above 3-month Euribor. The loans do not have any major impact on the average cost of debt of the company, Alstria said.
The refinancing is part of the overall strategy put in place by the company in order to manage the balloon payment of its main facility which matures at the end of 2011. This strategy includes the renegotiation of the LTV covenants which occurred in the first quarter 2009, selected asset sales, and selected non-recourse financing of assets. In the last 12 months, Alstria has paid down EUR 260 mln, allowing a reduction of its main loan facility from EUR 1.1 bn to EUR 843 mln.
