Granite REIT announces $185 million four-year unsecured term loan

Chicago, Dec. 19 – Granite Real Estate Investment Trust entered into a $185 million committed four-year senior unsecured non-revolving term loan facility, according to a news release.

Through a cross currency interest rate swap, Granite has exchanged the principal and interest payments for euro-denominated payments at an all-in 1.225% fixed interest rate.

Granite said it plans to use the net proceeds for general corporate purposes, including to fund development and property acquisitions.

“Pro forma this four-year term loan and the seven-year term loan previously announced [on Dec. 12], Granite's interest-bearing debt remains entirely unsecured, provides a natural and partial hedge to our European asset base and cash flows, has a weighted average cost of 2.18%, a weighted average term to maturity of 4.8 years and is entirely at a fixed rate of interest,” said Ilias Konstantopoulos, Granite’s chief financial officer, in the release.

Granite REIT is a Toronto-based real estate investment trust that owns and manages mostly industrial, warehouse and logistics properties in North America and Europe.

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