Real estate investor and manager Cromwell Property Group (ASX:CMW)(Cromwell) has confirmed it has assisted Cromwell EREIT Management Pte. Ltd., the Manager of Cromwell European REIT (CEREIT) to raise and conduct a €625 million unsecured debt refinance, on behalf of CEREIT.
As a result of the refinance, CEREIT’s weighted average term of debt has been extended to 3.6 years, while its attractive cost of funding is maintained at approximately 1.50%.
As at 30 September 2019, CEREIT had an aggregate leverage of 37.0%, up from 35.4% as at 30 June 2019, largely due to loans drawn to partially finance its recent acquisitions. This continues to sit comfortably within CEREITs preferred gearing range.
Cromwell’s Head of Treasury, Brett Hinton, commented, “It has been a great team effort and a great result for CEREIT. Cromwell’s London-based treasury team coordinated financiers across multiple jurisdictions and time zones to complete the c€625 million refinance.”
“This requires strong global banking relationships and we are delighted to have been able to partner with capital partners such as ING (Global Coordinator, Mandated Lead Arranger and Bookrunner), Crédit Agricole CIB and Standard Chartered Bank (Mandated Lead Arranger and Bookrunner) as well as Banca IMI and Banque Européenne du Crédit Mutuel.”
“It is always great to see Cromwell’s unique pan European platform continuing to deliver success for its clients,” he concluded.
At CEREIT’s 2019 Q3 results presentation on 13 November, CEO Mr Simon Garing commented, “In line with our responsible capital management strategy, we have successfully refinanced a significant proportion of asset-level secured debt with a high proportion of long-term unsecured debt, substantially improving CEREIT’s financing flexibility while continuing to access the low-cost of debt at c.1.5%”.
“CEREIT’s debt structure has been transformed, providing us further opportunities to capitalise on accretive growth opportunities,” he added.