Listed German home owner Gagfah has confirmed its has signed a huge CMBS refinancing deal.
Listed German home owner Gagfah has confirmed its has signed a huge CMBS refinancing deal.
Gagfah said in a statement that the €2.061 bn financing was agreed on 'improved terms' and was expected to close on 20 June.
The interest rate will be 2.76% per annum, with an annual amortisation rate of 0.5%. The current interest rate of the German Residential Funding loan is 4.32% per annum.
The loan will be refinanced through a CMBS structure with a maturity of five-years plus one-year extension possibility, the company said, 'given the favorable terms and the increased investor demand'.
Earlier this year, Gagfah had already closed WOBA financing with a loan amount of just over €1 bn.
'The refinancing at such attractive terms puts us in a great position and enables us to shift focus on our core business', said Thomas Zinnöcker, CEO of Gagfah.
Gagfah is the largest listed property company in Germany. Its portfolio comprises 145,000 residential units and more than 35,000 units under property and facility management for third parties.
