Hansteen Holdings, the UK and Continental European property investment company, has refinanced two loans secured against its German portfolio with two new facilities totalling €343 mln.

Hansteen Holdings, the UK and Continental European property investment company, has refinanced two loans secured against its German portfolio with two new facilities totalling €343 mln.

The company’s UniCredit loan, due for repayment in February 2015, has been refinanced with a €235 mln five-year facility provided by a consortium of lenders including Landesbank Hessen-Thüringen Girozentrale (Helaba), Natixis Pfandbriefbank, SEB and various entities managed or advised by AXA REIM.

The loan-to-value ratio is 51% with hedging against 80% of the loan which results in an interest cost of 3.5% per annum excluding fees.

The second loan from Lloyds Banking Group, due to expire in October 2014, has been refinanced with a €108 mln five-year facility from HSBC at a loan-to-value ratio of 48%. The company has hedged €55 mln of the loan with an interest rate swap, resulting in an average interest cost of 2.9% per annum, excluding fees.

Ian Watson, joint chief executive of Hansteen, commented: 'It is a testament to the strength of our business model that we have been able to raise two substantial new loans on multi-let industrial property in Germany. The terms equate to less than 4% per annum gross interest costs, including amortised fees, and we are delighted with our new banking relationships.'

Hansteen Holdings is a European industrial REIT that invests in properties with high yields, low capital costs and opportunity for value improvement across Germany, the UK, the Netherlands, Belgium and France.

Founded by Morgan Jones and Ian Watson, the company listed on AIM in November 2005, raising £125 mln. It manages 4.1 million m2 and is valued at over £1.5 bn.