February 22, 2018. O1 Properties announced agreements with a number of Russian and European banks to finance development projects.
O1 Properties has signed an agreement with Credit Suisse (Switzerland) for project financing of the second phase of renovation of the Bolshevik business and cultural and centre (buildings 10, 19 and 20a) and the construction of the new A-Residenceprime apartment development. Under the agreement, Credit Suisse will provide up to 110 million euro for a maximum of eight years at interest of 3M EURIBOR + 1.85% and EURIBOR + 1.75% (for Bolshevik and A-Residence project, respectively). Guarantees are provided by the Polish state insurance company KUKE.
The Company also signed the agreement an with Sberbank (Russia) for refinancing of the credit line opened by CREDIT EUROPE BANK Ltd. in 2013 for financing of the first phase of renovation of the Bolshevik business and cultural centre. Under the agreement Sberbank will provide up to USD 100 mln. for seven years.
BGK bank (Poland) will provide financing for the final stage of renovation of the Bolshevik apartment complex.
Earlier the Moody’s international rating agency kept O1 properties corporate rating at B1 with stable forecast. The rating agency published issuer comment on O1 Properties Limited, which, among other matters, states that the Company continues to perform in line with expectations of the agency. The agency also noted that the company’s liquidity profile remains stable, supported by a comfortable debt maturity profile, with no significant debt repayments in the next 12-18 months.
O1 Properties recently published very strong business results for 2017. The value of leasing contracts at the Company’s business centres grew by 66% in 2017 compared with 2016 and the value of new contracts increased by 36%. As a result, the vacancy rate at all Company properties (including assets under management) fell to 12% and the vacancy rate at O1 Properties’ class-A business centres in Moscow’s central business district was below 7%. These figures are superior to the market average.View PDF