IREIT Global, a Europe-focused real estate investment trust (REIT) listed in Singapore, says it has secured a two-year EUR12.5 million ($18.9 million) term loan facility from City Development Limited’s wholly-owned subsidiary City Strategic Equity.
According to a Dec 24 bourse filing, the loan will be used to fund part of the construction costs for its single-tenant single-use office asset, the Berlin Campus. IREIT Global intends to reposition the Berlin Campus into a mixed-use asset for office, retail and hospitality tenants. The Berlin Campus’ former main tenant was Deutsche Rentenversicherung Bund, who vacated the property at the end of 2024.
The interest rate per annum of the loan facility is pegged to the EURIBOR and an additional 3.55% margin. The loan facility includes a change of control covenant, whereby IREIT Global will have to make a mandatory prepayment if CDL or its subsidiaries are no longer substantial shareholders of the REIT’s manager.
Breaching the covenant when the loan facility has been drawn down fully may affect approximately EUR443,457,000 or $669,620,000 of IREIT Global’s facilities. The amount excludes interest charges and fees.
IREIT Global units, as at 3 pm, was up 1.72% to 29.5 cents. It is up 3.51% year to date.
