No near-term refinancing risks for Cromwell E-Reit after loan rollover, new lender commitments

CROMWELL European Real Estate Investment Trust ’s (Cromwell E-Reit) wholly-owned subsidiary has restated a term loan facility by rolling over existing loans initially maturing in November 2023.

This is while obtaining about 70.6 million euros (S$100.8 million) in new commitments by existing lenders.

Following this, the European-focused Reit will no longer have any near-term refinancing risks, the manager’s chief financial officer Shane Hagan said on Thursday (Mar 9).

The amended and restated terms include an “accordion feature”, which allows the Reit to increase the size of the facility up to 110 million euros. This can be through the introduction of new lenders, or existing lenders upping their commitments.

The facility will also have sustainability-linked key performance indicators (KPIs), including improvements in assessments when it comes to sustainability benchmarks; an increase in the number of green building certifications; and an increase in the proportion of leases with green clauses. These KPIs will be set and measured annually over the term of the facility, the manager noted.

The new facility has a final maturity date of 3.5 years from its first utilised date. Some 50.6 million euros of initial loans previously due to expire in November 2023 have also been extended to October 2026.

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Meanwhile, the remainder of the facility will repay part of the drawn amounts under the Reit’s 200 million euro revolving credit facility due to expire in 2024.

Cromwell E-Reit was trading 0.6 per cent or S$0.01 higher at S$1.63, as at 10.27 am on Thursday.