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CIT secures $100m loan facility from HSBC

The proceeds will be used to refinance the trust's existing loan facility.

Singapore-listed Cambridge Industrial Trust (CIT) has completed a S$100 million ($74 million; EUR 66 million) unsecured loan facility with HSBC.

The facility includes a S$25 million term loan facility and a S$75 million revolving loan facility that will finance CIT’s general working capital requirements and refinance a loan facility previously granted by National Australia Bank. The expected final maturity date of the loans is on June 19, 2021.

Its manager Cambridge Industrial Trust Management (CITM) reportedly noted that all of CIT’s properties will be fully unencumbered, representing total portfolio value in excess of S$1.4 billion and that CIT’s weighted average debt expiry will be lengthened to 3.4 years.

“We will have no major refinancing requirements until 2H2018,” said CITM chief executive Philip Levinson, according to the report. “We will have also significantly insulated CIT from adverse interest rate movements.”

CIT invests in quality income-producing industrial properties and has a diversified portfolio of 51 properties located across Singapore, with a total gross floor area of approximately 8.5 million sq ft and a property value of S$1.42 billion as of 30 June 2016.

The properties range from logistics, warehousing, light industrial, general industrial and business parks, and they are located close to major transportation hubs and key industrial zones across the island.