The interest rate per annum of the loan facility is pegged to the EURIBOR and an additional 3.55% margin. The loan facility includes a change of control covenant, whereby IREIT Global will have to make a mandatory prepayment if CDL or its subsidiaries are no longer substantial shareholders of the REIT’s manager.
IREIT Global, a Europe-focused real estate investment trust (REIT) listed in Singapore, says it has secured a two-year EUR12.5 million ($18.9 million) term loan facility from City Development Limited’s wholly-owned subsidiary City Strategic Equity.
According to a Dec 24 bourse filing, the loan will be used to fund part of the construction costs for its single-tenant single-use office asset, the Berlin Campus. IREIT Global intends to reposition the Berlin Campus into a mixed-use asset for office, retail and hospitality tenants. The Berlin Campus’ former main tenant was Deutsche Rentenversicherung Bund, who vacated the property at the end of 2024.
