Godewind brings down borrowing costs with refinancing push

German office specialist Godewind Immobilien has secured an €80 mln loan to finance the Herzogterrassen office complex in Düsseldorf.

Godewind acquired the building, formerly the headquarters of the state-owned bank WestLB, for €140 mln in January. The building in the Friedrichstadt district has 16,000 m2 of office space, a vacancy rate of 45.4% and annual rental income of around €6.7 mln.

The five-year redemption-free loan has an interest rate of 1.32%, bringing the average lending rate on Godewind's entire €740 mln portfolio down to 1.44%. In February the company secured an €82 mln refinancing package from DZ Hyp for three assets in Frankfurt, Düsseldorf and Hamburg, over a five-year term at an interest rate of 1.09%.

Godewind is looking to arrange further financing deals on its properties Quartier am Zeughaus in Hamburg, Y2 in Frankfurt and 'sunsquare' and Eight Dornach in Munich. All the assets have been acquired in the last six months, with the Herzogterrassen the last to be concluded on April 15.

With a purchased vacancy rate of around 28% across its portfolio, the company believes it has significant potential for organic value appreciation.


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