Property investment trust Macquarie DDR Trust
(ASX:MDT) says it has agreed to terms to extend the maturity date of the US$111.1 million non-recourse commercial mortgage backed securities debt for a further 60 days to December 1 2009.
The trust says it will continue to work with its financiers for a longer term extension to mid-2010.
Macquarie DDR Trust says this extension allows the company and commercial mortgage backed securities special servicer to review the impact and possible advantages of changes to legislation governing commercial mortgage backed securities loans in the U.S. which it says grants increased flexibility to servicers of the loans.
Macquarie DDR says the loan is secured by 13 assets valued at US$182.7 million as at June 30 2009, and has an interest coverage ratio of approximately 2.5 times for the prior 12 months.
The trust says that since December 2008 this loan has been reduced by US$61.8 million by applying cash earnings and proceeds from asset sales towards the repayment of the loan.
Macquarie DDR Trust has posted net losses in the last two years following three years of profits.
