Property investor Hansteen has sourced a €145 million loan from ING Real Estate Finance and AXA Real Estate Investment Managers SGP to refinance a portfolio of light industrial assets located in the Netherlands.
The five-year loan refinances two existing loans provided by FGH Bank and ING. By refinancing its existing debt, Hansteen has reduced its cost of borrowing from 3.57 percent to 2.49 percent, which it said represents a saving of €1.3 million per year.
The new loan reflects a loan-to-value ratio of 48 percent, with hedging against 66 percent of the loan. AXA provided €96.7 million of the finance. ING acted as arranger, agent and security agent in the deal and provided €48.3 million.
The existing €80 million loan from FGH Bank was due to mature in April 2017 and the €57.8 million loan with ING was due in June 2019.
“The new loan is significantly earnings enhancing as the cost of borrowing will reduce by €1.3 million per year. In addition the debt maturity profile has been extended from 1.69 years to five years,” said Paul Rodger, Hansteen’s European director.
In 2014, Hansteen acquired around 4 million square feet of Dutch industrial space through a debt purchase. The firm paid €106 million for the portfolio through a consensual sale. The portfolio was valued at between €120 million and €130 million. The assets were owned by BGP and secured €170 million of debt.
Hansteen bought UniCredit’s €85 million share for around €42 million and ING’s at a lower discount. Simultaneously, ING made a new five-year loan, of €60 million, to fund Hansteen’s acquisition.