Hammerson and Allianz Real Estate have agreed a €625m (£573m) loan secured on Dundrum Town Centre in Dublin.
BNP Paribas and DekaBank acted as lead arrangers for the seven-year loan, which was secured at a leverage below 40%. Dundrum, valued at more than €1.5bn, is the largest asset in a portfolio that Hammerson and Allianz bought in October 2015 as part of a long-term investment strategy in Ireland.
Hammerson said its €312.5m share of proceeds will be used to reduce drawings under its revolving credit facilities. The company signed a five-year £360m facility with a syndicate of 14 international banks in April, which followed the extension of two other revolving credit facilties of £415m and £420m that same month.
The loan will mature in September 2024, and the interest cost is expected to be less than 2%.
Following completion, Hammerson’s ratio of secured debt to net tangible assets will be 8%.
Richard Sharp, group treasurer for Hammerson, said: “Given the high calibre of the underlying asset of Dundrum Town Centre we saw strong demand for this loan and hence have secured attractive pricing at a historically low coupon.
“We continue to actively focus on reducing our cost of debt, benefitting from a wide range of funding sources, mostly unsecured but also secured debt in selective circumstances with our joint venture partners.”
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