Phoenix Spree Deutschland closes new €60 million loan facility

By Rebecca Melvin

Concord, N.H., Jan. 25 – Phoenix Spree Deutschland Ltd. closed a €60 million loan facility with Natixis Pfandbriefbank AG and refinanced an existing facility on improved terms, according to a company release on Tuesday.

The new facility consists of two components including a €45 million acquisition facility and a €15 million capex facility.

The maturity date of the new facility is in September 2026. It bears interest at 115 basis points over Euribor, and it can be used to finance up to 100% of the total cost of both acquisitions and capex. When drawn, it is non-amortizing and terms to protect against future adverse interest rate movements have been agreed.

The acquisition facility provides the company with additional flexibility to pursue potential future acquisitions.

The capex facility will allow the company to continue its programs including improving its residential real estate and fulfilling its environmental obligations and following the removal of Berlin rent controls to resume vacant apartment renovations and modernizations.

In addition, the company refinanced existing debt provided by Berliner Sparkasse. The refinancing, signed Jan. 17, leverages the increase in valuation of certain underlying assets within the portfolio, releasing a further €14.9 million of equity.

Following completion, the total value of the loans that have been refinanced is €49.7 million and the maturities remain unchanged at between five and six years. The interest rate payable on these loans is lower than the current portfolio average and no additional hedging instruments for adverse interest rate movements are required, according to the company’s release.

The Jersey, U.K.-based company invests in residential and commercial real estate in Berlin.

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