SPH Reit secures refinancing of S$280m in 5-year loan

Sharanya Pillai

Published Wed, Apr 29, 2020 · 02:03 PM

SPH Reit (Real Estate Investment Trust) has secured from OCBC the refinancing of an existing S$280 million loan due in July 2020, for a new term of five years, the manager of the mainboard-listed Reit announced in a Wednesday bourse filing.

"In line with SPH Reit's prudent capital management strategy, the five-year tenure will continue to ensure that the debt maturity profile is well staggered, without major concentration of debts maturing in any single year," SPH Reit Management said in the filing.

SPH Reit is sponsored by Singapore Press Holdings, which publishes The Business Times.

SPH Reit's gearing is now 29.3 per cent, and the refinancing will "maintain a healthy balance sheet" with no other refinancing required until July 2021, the manager added. SPH Reit's portfolio weighted average debt term to maturity is expected to increase from 2.2 years to 3 years.

"This refinancing is an integral and proactive part of our ongoing efforts to manage our capital structure. In anticipation of the challenges posed by the prolonged Covid-19 situation, we believe that this will provide us with greater capital management flexibility to safeguard the interests of our investors," said Benjamin Kuah, SPH Reit's chief financial officer and head of investor relations.

Units of SPH Reit closed at S$0.795 on Wednesday, up S$0.01.