IVG Immobilien, Germany's largest listed real estate company, has reached agreement with its banks on the early extension of credit lines totalling EUR 2.6 bn in recent weeks.

IVG Immobilien, Germany's largest listed real estate company, has reached agreement with its banks on the early extension of credit lines totalling EUR 2.6 bn in recent weeks.

In the largest transaction, the syndicated loan 2009 (SynLoan II), which was originally due in the fourth quarter of 2012 was extended by 12 German banks until the third quarter of 2014. The current credit volume is EUR 1.047 bn and continued redemption payments have been financed through a pre-agreed sales programme of caverns to a specialized fund structured by IVG investing in caverns (IVG Caverns Fund).

IVG expects a slight increase in cost of debt short-term, with overall falling cost of debt over the lifetime of the financing.

In addition three German banks have agreed an early extension of 'CORE' financing totalling EUR 933 mln and originally maturing in 3Q 2012 until December 2015. IVG expects the financing costs to decrease as a result.

Following the two latest agreements IVG has secured debt extensions of EUR 2.6 bn in short term credit lines in the last few weeks.

IVG Immobilien manages a real estate portfolio valued at EUR 22 bn.