This article is from the Australian Property Journal archive
RUBICON Europe Trust has sold two of its commercial real estate loan assets for approximately €45.1 million ($A73.8 million).
But the sale prices were below the par value, REU selling the Ashbourne B Note for £18.25 million pound – the par value was £25 million pound.
Meanwhile, the Helsinki B1 and B2 Notes were sold for €22.08 million compared to par value of €30.24 million.
REU said the entire proceeds of the CRE loan asset sales will be used to retire debt under the Credit Suisse loan warehouse facility, which will reduce the amount outstanding under the facility from approximately €113.3 million ($A185.6 million) to approximately €68.3million ($A111.8 million).
This means that, consistent with the revised facility terms announced on March 17 2008, no further repayments to Credit Suisse will be required until October 15 2008, when a further repayment of approximately €28 million will be required.
Following completion of the sale of the two CRE loan assets, REU’s portfolio (by carrying value) will comprise approximately 75% office properties with a weighted average lease duration of approximately 10 years and approximately 25% CRE loan assets.
The agreement is conditional on obtaining certain consents from the borrowers and senior lenders. Settlement is scheduled to occur on June 03 2008.
Australian Property Journal
