Shopping center investor Deutsche Euroshop has refinanced loans totalling EUR 132.2 mln over ten years. The firm has entered into a new loan agreement that includes a EUR 50 mln loan to be extended in October 2009 as well a EUR 82.2 mln loan not due until 2013.
Shopping center investor Deutsche Euroshop has refinanced loans totalling EUR 132.2 mln over ten years. The firm has entered into a new loan agreement that includes a EUR 50 mln loan to be extended in October 2009 as well a EUR 82.2 mln loan not due until 2013.
The lender is Deutsche Genossenschafts-Hypothekenbank AG (DG HYP), which will replace the previous creditor banks. The collateral for the loan is the Rhein-Neckar Zentrum in Viernheim, in which Deutsche EuroShop owns a 99.9% interest.
'This refinancing will reduce our annual interest payments by over one million euros,' said Olaf Borkers, chief financial officer for Deutsche EuroShop. 'The average remaining life of our loans will rise to about eight years. We will not have to renegotiate any more long term debt financing until the end of 2012,' he continued.
Deutsche EuroShop is Germany's only public company, that invests solely in shopping centers in prime locations. The MDAX-listed company has equity interests in 16 European shopping centers in Germany, Austria, Hungary and Poland.
