Redefine International has confirmed that it has completed the first part of the refinancing of the €156.8m (£116m) German retail property portfolio it bought in a 50/50 joint venture with Redefine Properties.
The joint venture intended to refinance the existing €100m debt facilities acquired on acquisition with a new single facility at present market rates.
It 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 jv as part of the initial drawdown.
The facility has a margin of 1.2% and an all-in interest rate of 1.58%, assuming the current five-year euro swap rate. The facility has no amortisation and matures in May 2020.
In addition to the financing, the gro..3up has agreed that Redefine Properties will dispose of 12 German retail properties owned by Redefine International and with a value of €16.89m, to the joint venture.
The properties are all mixed-use retail centres and are let to well-known German retailers.
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 in cash.
