marți, 16 septembrie 2008

Arrangement €50 million financing Suceava Shopping City, Romania (RO)

Argo Real Estate Opportunity Fund Limited (“AREOF” or “the Group”) is pleased to announce the refinancing of its existing loan facility with Alpha Bank following the successful completion and opening of Suceava Shopping City in April of this year.
The proceeds of the financing will enable further optimisation of the Group’s capital structure and provide additional working capital for current development projects. The 50,000 m² Suceava Shopping City retail park, anchored by key retailers Carrefour Hypermarket, Baumax, Media Galaxy and Mobexpert, is over 99% let and has traded strongly since its April 2008 opening. The refinancing of the Alpha Bank loan from the existing facility of €33.5m to €50m demonstrates the continued ability of the Group to complete, finance and effectively asset manage its development projects within the current challenging credit environment.

Commenting on the financing, Magnus Lofgren, Fund Manager of AREOF, stated “We are very pleased to be increasing our loan facility with Alpha Bank. With this being our third financing closed over the past three months, it caps a highly productive summer period for the Group. In total, these recent financings amount to approximately €158 million of capital (some $225 million), an excellent achievement given the difficult debt market, which we believe is a reflection of the quality of our projects implemented to date.”