DUBLIN-Real Estate Opportunities is planning to raise euro 375 million ($454 million) in what is being dubbed "the first single large real estate loan to be securitised in Ireland." Eurohypo, Europe's largest specialist property bank, is arranging the seven-year loan. It will be secured against 16 retail and office properties (15 in Dublin and one in Cork), including the Stillorgan Shopping Centre and offices occupied by Bank of Ireland and KPMG.
In a company statement, REO chairman Ray Horney states that, "The loan will be used to replace existing borrowings, driving down costs while also freeing up cash. This is an innovative transaction that will allow REO to make substantial annual interest savings estimated at euro 2.8 million ($3.39 million), while freeing up cash. The deal will also allow us to pursue further expansion opportunities in the real estate markets in Ireland and elsewhere."
The euro 375-million ($454-million) loan will be financed through the issue by Opera Finance plc of CMBS. The issue will consist of four tranches, expected to be rated by Fitch and Standard & Poor's.
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