Hong Kong-based Regal Real Estate Investment Trust (Regal REIT) has announced that its wholly-owned subsidiaries, Bauhinia Hotels Limited and Rich Day Investments Limited, have secured a HK$5.5 billion (€632 million; $710 million) revolving loan facility with nine local and international banks and financial institutions.
The five-year facility agreement includes a term loan facility of up to HK$4.5 billion and a revolving loan facility of up to HK$1 billion, carrying a Hibor plus 115 basis points interest rate. The funds will be used in part to refinance an existing term loan facility that matures in 2018 and to provide general corporate funding for new acquisitions and the upgrade of its existing property portfolio.
The lead arrangers of the loan are Hang Seng Bank, The Bank of East Asia, China Construction Bank, Industrial and Commercial Bank of China, Oversea-Chinese Banking Corporation, United Overseas Bank, Sumitomo Mitsui Banking Corporation, Australia and New Zealand Banking Group and Cre´dit Agricole Corporate and Investment Bank.
“The success of this syndication symbolizes the confidence and commitment of Regal REIT Group and the banking community in Hong Kong’s tourist and hotel industries,” said Y.S. Lo, chairman of Regal REIT Manager. “Regal REIT will continue to actively look for appropriate investment opportunities to expand and broaden its asset and income base.”
Regal REIT is the only hospitality REIT listed on the Hong Kong Stock Exchange. It owns eight hotel properties in Hong Kong, with a total of 4,500 hotel guestrooms and suites, representing over 10 percent of all the High Tariff A and B hotel room inventory in Hong Kong.