Hansteen refinances Dutch light industrial portfolio

13th Jul 2016 07:51

(ShareCast News) - UK and continental Europe property investment company Hansteen Holdings announced on Wednesday that it has refinanced two loans secured against its Netherlands light industrial property portfolio, with a single loan totalling €145m.The FTSE 250 firm said this resulted in a reduction in the cost of borrowing on the portfolio from 3.57% to 2.49%, excluding fees, representing a saving of €1.3m per annum."It is a testament to the growing interest in the Dutch light industrial sector, and to our business model, that we have been able to refinance this portfolio on such competitive terms," said Hansteen European director Paul Rodger."The new loan is significantly earnings enhancing as the cost of borrowing will reduce by €1.3m per year."In addition the debt maturity profile has been extended from 1.69 years to 5 years," Rodger added.Hansteen's €80m loan with FGH Bank and €57.8m loan with ING Bank, due for repayment in April 2017 and June 2019 respectively, have been refinanced with a €145m five-year facility provided by ING and various entities managed or advised by AXA REIM SGP.The loan-to-value ratio is 48% with hedging against 66% of the loan, which results in an interest cost of 2.49% per annum, excluding fees."We are delighted to have the opportunity to further develop our relationship with both ING and AXA and we look forward to working with both banks in the coming years," Rodger said.