Redefine International refinances German retail property portfolio

Posted On Friday, 08 May 2015 09:12 Published by
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Redefine International completed the first part of the refinancing related to the €156.8m German retail property portfolio acquired in a 50/50 joint venture with Redefine Properties.


Michael Watters

As previously indicated, it was the intention of the Joint Venture to refinance the existing €100.0m debt facilities acquired on acquisition with a new single facility at current market rates. The Joint Venture has secured a €83.15m facility from Berlin Hyp AG and has initially drawn down €64.93m. Total loan break costs of €10.5m were settled by the Joint Venture as part of the initial drawdown. The Facility has a margin of 1.20% and an all-in interest rate of 1.58%, assuming the current five year Euro swap rate. 

Simultaneous to the refinancing, agreement has been reached with Redefine Properties to dispose of 12 German retail properties currently owned by Redefine International to the Joint Venture. The Properties, which have a total valued of €16.89m, fit well with the profile of the existing portfolio as they also comprise discount retail and mixed use centres, let to well-known German retailers.

Redefine Properties is a related party of the Company under the Listing Rules by virtue of its 30.03% shareholding in the Company and therefore the further investment into the Joint Venture as a result of the above transactions fall within Listing Rule 11.1.10 R. Redefine International will be funding its 50% equity contribution required to complete this refinancing through the disposal of the Properties and by injecting €9.15m of cash.


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