Spanish REIT Lar España has secured a €100 mln loan to finance the construction of its Palmas Altas retail and leisure complex in Seville, southern Spain.
In a statement, Lar said that this is the first time since 2007 that a retail property of this size has received bank financing. Once completed in early 2019, the property will become the largest in Lar's portfolio and one of the largest retail schemes in the region.
'This deal, the first of its kind since the onset of the crisis, marks a turning point in the financing of retail developments in Spain,' commented chief financial officer Sergio Criado.
The seven-year loan was granted by Banco Santander, Banc Sabadell, Liberbank and Unicaja Banco with an interest rate of Euribor+2.25% for the first two years and +2% for
the following five.
Palmas Altas comprises 100,000 m2 of retail and leisure space, with close to 150 retail units. It is currently 63% pre-let. Once completed it is forecast to generate an annual rental income of €15 mln.