Summit Germany said it has entered into an unconditional agreement with a current lender to acquire a debt secured over Company’s properties for €19.5m.
The remaining term of the Acquired Debt is approximately 5 years and the annual debt service costs are €2.9m, which will be payable to the Company following the Transaction.
In order to fund the Transaction, the Company has entered into a loan agreement with its majority shareholder, Summit Real Estate Holdings, whereby SREH will grant an unsecured loan of €19.5m to the Company at 8% per annum.
The Company said it intends to refinance the properties securing the Acquired Debt and that the funds received on the refinancing will be used to repay the Shareholder Loan.
At 1:08pm: (LON:SMTG) Summit Germany Ltd share price was -0p at 1.09p
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