German property compnay Colonia Real Estate has secured a refinancing of one of its residential portfolios through a successful debt-buyback. The financing volume was more than EUR 30 mln. The company agreed the financing in May this year at a fix-rate mortgage with a German mortgage bank. The coupon is less than 6% with a five year maturity.
German property compnay Colonia Real Estate has secured a refinancing of one of its residential portfolios through a successful debt-buyback. The financing volume was more than EUR 30 mln. The company agreed the financing in May this year at a fix-rate mortgage with a German mortgage bank. The coupon is less than 6% with a five year maturity.
During last six months the group closed refinancings of EUR 70 mln. 'The fact that we are able to use the actual inefficiencies in the mortgage markets for an attractive buyback of our performing loans and to secure a subsequent refinancing underlines our capacity to act in this environment and our credibility with our banks', stated Stephan Rind, CEO of Colonia Real Estate. 'To secure our liquidity and our long-term financing structure as well as strict cost management on operational levels is our highest priority in the current market. A share buyback program is therefore our least preferred option even with the high discount on NAV at the moment'.
