This article is from the Australian Property Journal archive
THE Multiplex Acumen Property Fund has met its first debt reduction target as well as signed a new facility to replace the existing one expiring on December 31.
The fund has signed a new facility for $74.2 million in order for MPF to refinance its existing borrowing facility until December 2011.
Fund manager Tim Spencer said the signing reflects negotiations over the last year aimed at extending the facility and securing the best possible terms for MPF in the current environment.
MPF has also repaid $12.0 million to its financier, reducing its facility balance from $74.2 million to $62.2 million.
As a result, the fund has exceeded the March 2010 repayment requirement of $10 million which therefore reduces ongoing interest costs.
Spencer said the fund will continue to seek to reduce borrowings as quickly as possible.
The repayment has been funded from $9.2 million in capital returned from the wind up of the Dexus Northgate Property Trust as well as proceeds of a partial redemption of the fund’s investment in Multiplex New Zealand Property Fund as part of that fund’s limited liquidity facility.
Australian Property Journal
