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As part of its prudent capital management strategy, Cambridge Industrial Trust (CIT) is set to refinance the loan facility granted by National Australia Bank (NAB) on Monday (19 September).
After refinancing, its weighted average debt expiry will be lengthened to 3.4 years with 88.5 percent of interest rate exposure fixed, and all-in cost of debt stable at approximately 3.65 percent per annum. All of CIT’s properties will be fully unencumbered, representing a total portfolio value of more than S$1.4 billion.
“We will have no major refinancing requirements until 2H 2018,” said Philip Levinson, CEO of CIT’s manager, Cambridge Industrial Trust Management Ltd (CITM).
“We will have also significantly insulated CIT from adverse interest rate movements for the next 3.2 years, and achieved our goal of a 100 percent unencumbered portfolio, which improves CIT’s capital structure and operational flexibility.”
Aside from refinancing the existing NAB Facility, it has also made progress on its capital management strategy by issuing a series of seven-year medium-term notes (MTNs) and establishing a new unsecured bilateral term loan facility so far this year.
“In times of interest rate volatility and a weakening economic backdrop, this demonstrates CITM’s ability to access capital from various funding sources and strengthen CIT’s capital structure further,” Levinson added.
Singapore-listed CIT, which made its Initial Public Offering (IPO) in July 2006, is the city-state’s first independent industrial real estate investment trust.
As of 30 June 2016, it has a diversified portfolio of 51 properties across Singapore, with a total gross floor area of around 8.5 million sq ft and collectively valued at S$1.42 billion. The properties range from logistics, warehousing, light industrial, general industrial, a car showroom and a workshop to a business park. These are all located close to major transportation hubs and key industrial zones.
CIT’s manager is indirectly owned by National Australia Bank Group (56 percent), Oxley Group (24 percent) and Mitsui & Co Ltd (20 percent).
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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