France's Tour Eiffel secures new €210m loan

French listed property investor Société de la Tour Eiffel (STE) has secured a new three-year loan from a banking consortium.

The €210 mln loan will be used to refinance the group’s existing mortgage debt and to finance its investment needs, STE said in a statement.

The consortium comprises BNP Paribas as mandated as agent and joint arranger, Crédit Mutuel Arkéa Group, Crédit Agricole and Bordeaux-based asset manager Investimo.

'We are delighted to have met the goals we set ourselves at the beginning of the year, in particular to completely restructure the company’s indebtedness and to reduce its financial costs,' said Philippe Lemoine, managing director of Société de la Tour Eiffel. 'This loan supports the company’s strategic development plan.'

STW has a €819 mln portfolio comprising mainly of office properties in the Paris region. The real estate investment trust, or SIIC in French, is ploughing ahead with plans to double its portfolio to €1.6 bn over the next three to five years. The expansion plan follows the acquisition of a majority holding in STE by mutual insurer SMABTP which has been focusing on strengthening the company's capital base and growing the portfolio.

STE was advised by law firm De Pardieu Brocas Maffei. The banks were advised by law firm Shearman & Sterling.

In July, STE also carried out a €200 mln bond issue.