Duo in €205m Warsaw office portfolio refinance

Immofinanz secures a five-year debt facility from Berlin Hyp and Erste Group Bank to replace seven real estate loans.

Berlin Hyp and Erste Group Bank have financed the Warsaw property portfolio of Austrian developer Immofinanz with a €205 million loan.

The five-year, secured debt package replaces seven existing, individual real estate loans. Berlin Hyp acted as agent for the transaction.

The portfolio consists of seven office buildings – the Park Postepu (pictured), Nimbus, Brama Zachodnia, Equator, IO-1, Crown Point and the Crown Tower, all located in Poland’s capital.

The assets have a total lettable area of around 140,000 square metres and have been owned and managed by Immofinanz for several years.

Immofinanz has refinanced around €1.6 billion of debt this year, representing 60 percent of the group’s financial liabilities by the end of September.

The debt facilities will reduce the firm’s future interest costs by around €18.3 million per year, Immofinanz said. The developer also noted that refinancings and repayments reduced the volume of outstanding bonds to around €330 million, from €628.5 million by the end of last year.

The net loan-to-value ratio of the firm’s debt was 42.3 percent by the end of September, compared with 49 percent by the end of 2016.

Average financing costs, excluding derivatives, were 2.05 percent by the end of September, while around two-thirds of Immofinanz’s financial liabilities carry fixed interest rates or are hedged against interest-rate fluctuations, the firm noted.