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United States : Global Net Lease, Inc. Closes on Three New Multi-Property Financings in Europe.

Global Net Lease, Inc. a real estate investment trust focused on the acquisition of net lease properties, has closed three multi-property financings during the current year for a total of 245.5 million ($279.2 million based on the prevailing exchange rate on June 30, 2019). The refinancings encumber 13 of GNL's assets located in Finland ("Finnish Multi-Property Financing"), Germany ("German Multi-Property Financing"), the Netherlands and Luxembourg ("Benelux Multi-Property Financing").

Finnish Multi-Property Financing:

In February 2019, the Company, through certain of its subsidiaries, entered into a loan agreement with Nordea Bank ABP and borrowed 74.0 million secured by mortgages on its five properties in Finland. The maturity date of this loan is February 1, 2024, and it bears interest at a rate of 3-month Euribor plus 1.4% per year, with 80% of the principal amount of the loan fixed by swap agreements. The effective interest rate on this loan is 1.7%, which is a reduction from a weighted average interest rate of 2.3% for the loans that were previously secured by these properties. The loan is interest-only with the principal due at maturity. At the closing of the loan, 57.4 million was used to repay all outstanding indebtedness encumbering the five properties.

German Multi-Property Financing:

In May 2019, the Company, through certain of its subsidiaries, entered into a loan agreement with Landesbank Hessen-Thringen Girozentrale and borrowed 51.5 million secured by mortgages on five of its properties in Germany. The loan will be interest-only with the principal due at maturity, which will be June 30, 2023. The maturity date may be extended at the Company's option to February 29, 2024 subject to conditions. The loan initially bore interest at a rate of 3-month Euribor plus 1.80% per annum, but, following the replacement of an easement on one property, the loan will bear interest going forward at a rate of Euribor plus 1.55% per annum beginning on October 1, 2019. The Company also entered into a swap to fix the interest rate for 80% of the principal amount. The net proceeds from the loan were used to repay all 35.6 million outstanding in mortgage indebtedness that previously encumbered the properties that secured the loan. The repaid mortgage indebtedness bore interest at a weighted average rate of 1.62%.

Benelux Multi-Property Financing:

In June 2019, the Company, through certain of its subsidiaries, entered into a loan agreement with Landesbank Hessen-Thringen Girozentrale, and borrowed 120.0 million secured by mortgages on three of its properties in the Netherlands and Luxembourg. The Loan bears interest at a fixed rate of 1.383% and matures on June 11, 2024. The Loan is interest-only, with the principal due at maturity. At the closing of the Loan, approximately 80.3 million was used to repay all outstanding indebtedness encumbering two of the properties. The repaid mortgage indebtedness bore interest at a weighted average rate of 1.58%.

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Publication:Mena Report
Geographic Code:4EUGE
Date:Jul 20, 2019
Words:501
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