Hibernia REIT (HBRN) has today announced that it has entered into a €100m three year revolving credit facility with Bank of Ireland (BKIR), secured against a corporate level debenture.
This move is an expected one. On the completion of the investments announced last month, HBRN said that it would have deployed €337m or 91% of the net proceeds from its IPO, with a further €63m committed.
Since then HBRN said that it was in exclusive discussions to acquire a large office building in the CBD, so agreeing a large credit facility to support its investment plans (it has committed to gearing of up to 40% in the pursuit of its strategy of assembling a portfolio of high quality property assets) was a logical next step.
HBRN now has debt facilities totalling €134m related to its portfolio and cash and undrawn committed facilities of more than €140m.