Summit Germany, the AIM-listed property company, has refinanced €268m of its €309m of debt with two banks.
HSH Nordbank and DG Hyp have provided a seven-year loan with a 3.14% interest rate. The interest rate is a reduction on the borrower’s previous arrangements, which were set at 3.9%. The change has resulted in a €13.5m uplift in the company’s NAV.
Listed property companies are continuing to use the increasingly cheap debt market in order to expand their portfolios.
Summit Germany is led by managing director Zohar Levy, the controlling shareholder of the company’s parent Summit Group, which invests in property in Israel and Germany. Its non-executive chairman is Harry Hyman, founder of Primary Health Properties. It has built a German investment portfolio of around €600m since 2004 and listed on AIM in February last year.
Today the company also announced it had raised €120m through a new share placing which will be used for new acquisitions.