AXA Property Trust is to inject €2.61m (£2.1m) of cash to rebalance its loan-to-value ratio following its latest valuation by the banks.
On 2 July the LTV of the main loan facility was 52%, based on a portfolio valuation of €129.2m with outstanding loans of €67.23m.
In order to reduce the loan to €64.62m and comply with the 50% LTV covenant in the 25 business days permitted under the facility, the company will now repay a further €2.61m.
The sale of an asset at Treuchtlingen, Germany will generate €5.64m and €1.76m of excess cash after release payments to the loan of €3.88m, which, together with a further €850,000 from the company’s surplus cash will satisfy the LTV test.
After these payments and based on the bank’s valuation, the LTV will be 49.2%.
It will maintain the current 3p per annum dividend.
jack.sidders@estatesgazette.com
