Soilbuild Business Space REIT property in Changi Business Park, EightriumSoilbuild Business Space REIT property in Changi Business Park, Eightrium

Soilbuild Business Space REIT (SGX:SV3U) announced on 25 September that it has successfully refinanced a SGD185 million club loan.

The loan, comprising SGD95 million and SGD90 million expiring in August 2016 and August 2017 respectively, was part of a SGD285 million facility drawn down on the REIT’s listing date.

“As a result of the refinancing, the expiry of the SGD185 million loan has been extended to March 2020”, said the REIT in its announcement. “Soilbuild REIT’s weighted average debt expiry has now lengthened to 3.5 years and the all-in cost of debt lowered from 3.49% per annum to 3.20% per annum”, it added.

With the release of mortgages over 3 properties amounting to SGD290 million, Soilbuild REIT’s unencumbered investment properties are now in excess of SGD0.5 billion, representing approximately 43% of its investment properties by value, said the REIT.

“This refinancing is reflective of our prudent and pro-active capital management strategy of refinancing loans early, optimizing funding costs and reducing our portfolio’s encumbrance”, said Roy Teo, acting CEO of the REIT’s manager. “Having 98% of borrowing cost fixed for the next two years also significantly reduces Soilbuild REIT’s exposure to adverse interest rate movements”, he added.

Units of Soilbuild Business Space REIT last changed hands on the Singapore Exchange at SGD0.81.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.