Gagfah refinancing nears completion

Listed property giant Gagfah has announced that it is on track to complete the refinancing of its €2 bn operation loan.

Gagfah will refinance the loan - which matures in August 2013 - by breaking it down into four parts, instead of six as originally planned. This will result in more favourable interest terms and increased investor demand, the company said.

The underwriters of the loan will be German and international banks, insurance companies and commercial mortgage-backed securities (CMBS).

The refinancing comes amid a stable first quarter performance. Funds from operations held broadly steady year-on-year at €23.6 mln. The company also divested 181 single-unit sales and a block of 542 units in the German city of Heidenheim during the quarter.

Gagfah CEO Thomas Zinnocker believes the refinancing will enable the company to proceed with investments in value-enhancing portfolio measures. 'This puts the company in a great position and enables us to refocus on our core business and to prepare Gagfah for the next phase,' he said.