Cromwell European REIT secures €625m debt refinancing

Real estate investor and manager Cromwell Property Group has assisted Cromwell EREIT Management to raise and conduct a €625 mln unsecured debt refinance, on behalf of Cromwell European REIT (CEREIT).

This sees CEREIT’s weighted average term of debt extended to 3.6 years while maintaining its cost of funding at approximately 1.50%.

Cromwell’s head of real estate finance, Europe, Gwendal Kalkofen commented: 'It is great to have been instrumental in the successful raise of €625 mln in unsecured debt in support of CEREIT’s transformational capital initiative. This pan-global debt restructure required strong global banking relationships across multiple jurisdictions and time zones.'

As at September 30, CEREIT had an aggregate leverage of 37.0%, up from 35.4% as at 30 June 2019, largely due to loans drawn to partially finance its recent acquisitions. This continues to sit within CEREIT’s preferred gearing range, the firm said.

'We are delighted to have worked on the deal with a broad range of capital partners including ING (Global Coordinator, Mandated Lead Arranger and Bookrunner), Crédit Agricole CIB and Standard Chartered Bank (Mandated Lead Arranger and Bookrunner) as well as Banca IMI (a subsidiary of Intesa Sanpaolo Group) and Banque Européenne du Crédit Mutuel,' Kalkofen added.

ING’s head of real estate sector Benelux, Arie Hubers commented: 'Our relationship with Cromwell underlines ING’s capability to support clients across continents and capital structures through our geographical footprint and products.

'We are excited that we are part of this landmark transaction for CEREIT, enabling the company to execute their growth strategy.'

Allen & Overy (Luxembourg) acted as CEREIT’s legal advisor in the refinancing, while Clifford Chance (Luxembourg) acted as legal advisor to the banking syndicate.


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