This article is from the Australian Property Journal archive
ALE Property Group has entered into an additional CPI hedge on $19 million for 15 years to May 2023.
This CPI hedge tops up the hedging ALE entered into last month for 100% of its debt for 15 years at a 3.55% interest rate.
The additional hedge was completed on a 3.77% interest rate and will free cash of $0.5 million in FY09 – equivalent to an increase in free cash flow of around 60 cents per security.
Ale has a $19 million of nominal hedging in place for 10 years ending May 2018 at a base rate of 7.34% but this will be wound up between August 2008 and May 2018.
ALE’s managing director Andrew Wilkinson said the company has a very robust risk management position.
“Over and above 20+ years of committed lease income, ALE now has 100% of its debt hedged for 15 years,” he concluded.
Australian Property Journal
