German listed residential group Gagfah has signed a five-year 鈧�700 mln CMBS refinancing for the WBN, WGN and NILEG residential portfolios.
German listed residential group Gagfah has signed a five-year 鈧�700 mln CMBS refinancing for the WBN, WGN and NILEG residential portfolios.
The coupon on the new CMBS will be 2.71%, almost 250 basis points lower than the 5.17% for the previous CMBS. The amortisation will be 0.5% per annum. The LTV of the portfolio is 65%.
In addition, Gagfah said it has signed a new three-year loan agreement for the Acquisition 1 portfolio of about 鈧�145 mln with a coupon of 2.87%. The previous loan for this portfolio, which had a coupon of 4.44%, had been fully repaid with the proceeds from the July equity event.
The proceeds from the new loan plus additional cash from the operating business will be used to repay 鈧�190 mln of the old NILEG CMBS and bring the new loan amount down to 鈧�700 mln. Finally, Gagfah also agreed on a two-year extension for the 鈧�200 mln GBH loan.
The transactions complete the refinancing of almost all of Gagfah's near-term maturities, except for 鈧�85 mln due in April 2014 and 鈧�360 mln due in October 2014. In total, the company has refinanced more than 鈧�4 bn in only nine months.
'We are very excited to secure yet another refinancing at such attractive terms,' commented CFO Gerald Klinck. Lowering the overall cost of debt by more than 100 basis points will give a significant boost to the company's FFO profile, added CEO Thomas Zinn枚cker.
