Spanish SOCIMI Axiare Patrimonio has secured a €144 million financing from three European banks, which it said will fund its growth in the coming months.
The SOCIMI has raised the finance through four loans. Two of the facilities have been provided by ING Real Estate Finance, with the other two provided by CaixaBank and BBVA.
The firm said that the capital will be invested in both new acquisitions and the active management of its rental property portfolio. The loans have an average 7.3-year expiry, an average total financing cost of 1.54 percent and a 95 percent bullet payment.
It added that the terms of the agreements are “highly flexible” and contain no cancellation penalties. The financing has raised the company’s gross LTV ratio to 44 percent.
These latest agreements take the total debt financing secured by Axiare to €538 million. The total average financing cost stands at 2.16 percent, with an average seven-year expiry.
“These financing agreements demonstrate the quality of our existing portfolio and the confidence in our management team. Via these agreements, we now have a further €145 million to continue to invest and improve our portfolio via active management,” said Luis López de Herrera-Oria, CEO of Axiare Patrimonio.