Kiwi Income extends $302.5M of bank facilities

Kiwi Income renews, extends $302.5M of bank facilities

Nov. 10 (BusinessDesk) – Kiwi Income Property Trust has renewed and extended $302.5 million of bank debt facilities that were due to expire in the first half of 2011.

The new facilities will add about 50 basis points to the trust’s weighted average cost of debt though chief financial officer Gavin Parker said KIP had managed through the global financial crisis on facilities negotiated before the downturn.

“We have avoided the very high rates and onerous terms seen at the peak of the financial crisis and have been able to negotiate comparatively favourable rates in a more stable banking environment,” he said in the statement.

The new arrangements start next month and will extend the weighted average maturity of the trust’s facilities to 2.9 years from 1.4 years as at Sept. 30.

Kiwi Income, whose properties include the Sylvia Park shopping mall in Auckland, has some $800 million of debt facilities with ANZ National Bank, Bank of New Zealand, Commonwealth Bank of Australia and Westpac Banking Corp.

The trust had undrawn debt facilities of $222 million as at the end of September.

As part of the new arrangements, the banks agreed to release mortgages held over Sylvia Park, the trust said.

Kiwi Income’s property portfolio amounts to $1.85 billion. Its units were unchanged today at $1.03.

(BusinessDesk)

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