Private investor of Australian retail centres, Aventus Retail Property Fund, (ASX:AVN) has announced it has executed agreements with bank and institutional lenders for a 7-year $110 million loan note facility, which will mature in January 2020.
The company said the new loan facility is in accordance with the fund’s strategy to diversify and lengthen its debt profile.
The facility will refinance a portion of the $200 million tranche of bank debt expiring in October this year.
The fund said the remaining portion of the tranche, comprising approximately $90 million, will be refinanced by the end of the financial year.
As a result of these initiatives, the fund’s weighted average debt expiry will increase from 2.9 years to 3.7 years, and the weighted average cost of debt for FY18 is expected to remain at 3.3 per cent per annum.
Shares in Aventus Retail Property Fund (ASX:AVN) are trading flat at $2.19.