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alstria office REIT-AG: alstria refinanced EUR 68 million and reduces overall cost of debt
- Two non recourse loans signed and funded
- Total refinancing of EUR 68 million and additional CAPEX line of EUR 8 million secured by four properties located in Hamburg, Mannheim and Wiesbaden
- Average total cost of debt on a corporate level stands at 4.4%(1)
alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT) which is solely focused on acquiring, owning and managing office real estate in Germany, today reports the completion of two debt refinancings of around EUR 76 million. EUR 68 million have been used to repay the main syndicated loan. The additional amount of EUR 8 million is a CAPEX line which will be used for the funding of an ongoing refurbishment.
The two new credit facilities, provided by two German financing institutions, are secured on a non recourse basis with a five year maturity. The average cost of debt of these two new credit facilities stands at 3.3%, reducing the overall company cost of debt to 4.4%1 from 4.8%. The properties securing the loans are located in Hamburg, Mannheim, and Wiesbaden. The properties have a weighted average lease length of 11.4 years in line with the average lease length of alstria's portfolio.
This refinancing is part of the overall strategy put in place by the company in order to manage the overall balloon payment of its main facility which matures at the end of 2011. This strategy includes the renegotiation of the LTV covenants which has occurred in the first quarter 2009, selected assets sales, and selected non recourse financing of assets.
"These two new deals reflect the implementation of alstria's strategy set up in summer 2007. Since then, we have paid off almost 20% of our main syndicated loan facility from new non recourse loans and selected asset sales. In line with our belief that deleveraging can be highly value destructive if executed too fast using radical measures like capital increases, we are strengthening our balance sheet step by step, safeguarding our shareholder value in the process," said Olivier Elamine CEO of alstria. "In the current market environment, the ability of alstria to refinance at optimum conditions with multiple lenders demonstrates the strength of our assets, and the quality of the underlying cash flow. We are convinced that, coupled with selected asset disposals, this is the right way to prepare the company for future opportunities that will arise in the market".
(1) As of 07/2009
This release constitutes neither an offer to sell nor a solicitation of an offer to buy any securities. The securities have already been sold. As far as this press release contains forward-looking statements with respect to the business, financial condition and results of operations of alstria office REIT-AG (alstria), these statements are based on current expectations or beliefs of alstria's management. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those reflected in such forward-looking statements. Apart from other factors not mentioned here, differences could occur as a result of changes in the overall economic situation and the competitive environment - especially in the core business segments and markets of alstria. Also, the development of the financial markets and changes in national as well as international provisions particularly in the field of tax legislation and financial reporting standards could have an effect. Terrorist attacks and their consequences could increase the likelihood and the extent of differences.
alstria undertakes no obligation to publicly release any revisions or updates to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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