DGAP-News: Deutsche EuroShop AG / Key word(s): Financing
Deutsche EuroShop: Financing extended for 2022, interest savings secured
Hamburg, 2 August 2022 – The shopping center investor Deutsche EuroShop AG has concluded its upcoming refinancing for 2022. This includes a Group-level loan of €52 million as well as financing for the Altmarkt-Galerie Dresden (€107 million) and the City-Point Kassel (€55 million). A credit tranche of €10 million for the Allee-Center Hamm will be repaid at the end of September. The signed contracts mean that, in the future, the company will profit from interest savings of approximately €0.5 million each year.
The interest expenses for 2022 will be approximately €3.2 million less than in the previous year. This is essentially the result of refinancing undertaken in 2021 and 2022 totalling around €400 million.
The Group does not face any further loan maturities this year. For the only refinancing due in 2023, €209 million for the Main-Taunus-Zentrum, the company has already agreed on a term sheet with a banking consortium. The interest rate for the current loan is 2.99%. After this, there is no further refinancing due until September 2025.
Back in March of this year, Deutsche Euroshop arranged long-term refinancing of a €107.4 million loan. A consortium of six savings banks led by the Ostsächsischen Sparkasse Dresden is providing the financing for the Altmarkt-Galerie Dresden until 2032. Olaf Borkers, Member of the Executive Board of Deutsche EuroShop, explains: “Savings banks are the local experts. They know our centers and most local tenants. This regional expertise is helpful because our real estate ultimately competes in the search for attractive financing conditions, often also with properties in world cities such as London, Paris or Amsterdam.”
“The latest interest rate increases come as no surprise to us, although we did not expect them quite to this extent,” continues Olaf Borkers. “For 2022, we are anticipating interest costs of around €37 million in the Group. This is comparable with our interest costs in 2006, which were around €39 million. However, our sales in 2006 were only around €93 million, whereas for 2022 we are anticipating revenue of over €200 million. Our financing situation has eased.”
Deutsche EuroShop AG is the only public company in Germany to invest solely in shopping centers in prime locations. The SDAX-listed company currently has investments in 21 shopping centers in Germany, Austria, Poland, the Czech Republic and Hungary. The portfolio includes the Main-Taunus-Zentrum near Frankfurt, the Altmarkt-Galerie in Dresden and the Galeria Baltycka in Danzig, among others.
|Company:||Deutsche EuroShop AG|
|Phone:||+49 (0)40 413 579-0|
|Fax:||+49 (0)40 413 579-29|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1410735|
|End of News||DGAP News Service|