SPH REIT enters A$205 million loan facility with Westpac

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SPH REIT has entered a A$205 million, or around S$194.8 million, loan facility with Westpac Banking Corp. as part of the financing of a 50 percent stake in Westfield Marion Shopping Centre in South Australia, the REIT said in a filing to SGX Thursday.

The facility will be in three tranches, the filing said.

Tranche A will be for A$80 million, or around S$76 million, in a single draw term facility with a tenor of three years, with the proceeds earmarked to finance the acquisition, SPH REIT said.

Tranche B will be for A$120 million, or around S$114 million, in a single draw term facility, with a tenor of five years, with the proceeds to be used to finance the acquisition, the REIT said.

Tranche C will be for A$5 million, or around S$4.8 million, in a revolving term facility, with a tenor of five years from the first drawdown of the facilities, the REIT said. The proceeds of tranche C will be used for working capital in relation to the property, the filing said.

The facilities from Westpac will be secured by a first-ranking mortgage on the property and a first-ranking all-asset general security deed over current and future assets, the filing said.

After drawing down the loan facilities in full, SPH REIT’s gearing is expected to rise to 29.5 percent from 27.5 percent previously, the filing said.