Appeninn restructures 10bn HUF (34mio EUR) of its loan portfolio

Appeninn reached a 250 million HUF agreement with one of its banking partners within the framework of the Hungarian National Bank's Growth for Lending Programme. The loan was disbursed today. The agreement will conclude a series of loan restructuring totalling 10 billion HUF, providing more favourable financing conditions for a number of its projects.

The agreement concluded most recently will replace three different foreign currency denominated loans - linked to three properties - with a 2.5% Forint loan.

 

"The current interest rate environment enabled us to transform our liability structure in a favourable way relative to previous years. The agreements concluded this year have - to the tune of 10bn HUF - reduced the cost of borrowing, eliminated the currency mismatch and lengthened to ten years the maturity of our loans. Since our strategy is to grow by acquiring assets generating high income, these steps will free up resources to undertake further growth." – CEO, Gabor Szekely.

 

Loan amount	New currency	Interest rate (%)	Timescale	Maturity Bank
30 million	EUR	2,25-2,5% 3 month Euribor	10 year	ERSTE Bank
130 million*	HUF	2,5%	10 year	Orgovány Tak. Szöv.
407 million*	HUF	1,7%	10 year	K&H Bank
250 million*	HUF	2,5%	10 year	OTP Bank

* Financing under the framework of the Lending for Growth Programme

 

"Restructuring the financing of our real estate portfolio will improve the company's profitability while freeing up resources for further acquisitions. The environment is favourable for building up the portfolio size we aim for in the medium term. Current prices offer a good entry point, the financing is available for quality borrowers, and the slide in rental rates has stopped." - Gabor Szekely, CEO.

 

Appeninn has built a strong presence in Budapest's category B office space market, and is present in the city-logistics sector throughout the country with a high occupancy rate in both segments.

 

"Demand is stable in the upper segments of the B category office space market. The B category segment's strength is a result of the demand coming from large, medium and small enterprises forced out of the A category due to cost cutting pressures, while still aiming to stay in good locations and high quality offices. These type of customers are attracted not only by the favourable rental rates but also by our flexible and efficient facility management we are able to provide." - Gabor Szekely, CEO.

 

"The agreements signed in recent months prove that Hungarian banks are looking for high quality projects and companies to do business with. Further to that, being a listed company and the transparent operating structure are also important for the banks we work with, providing shareholder value through the favourable financing conditions we can achieve. The extension of the Lending for Growth Programme will enable us to continue expanding our portfolio" - Gabor Szekely, CEO.

Source: IngatlanHírek.hu