Munich-based real estate company VIB Vermögen concluded a new €505 mln syndicated loan agreement for 45 commercial properties.
The new 7-year financing replaces around €245 mln in previous financing for the existing property portfolio with an average remaining fixed-interest period of 3.5 years ahead of schedule.
Besides enabling the company to repay existing loans ahead of schedule, the expansion and restructuring of the credit facility provides VIB Vermögen with financial flexibility and better planning certainty.
The interest expense will increase by around €17 mln annually against the backdrop of the increased interest rate level and the agreed conditions, almost offset by the elimination of €15 mln per year in regular repayments.
The refinancing will increase the average term of all financial liabilities from 4.5 years as of 31 December 2022 to 6.0 years.