ALE Property Group has closed a commercial mortgage backed securities offer, raising $160 million.
Proceeds will be used to refinance the existing CMBS issue which has a scheduled maturity in May 2011. ALE’s gearing level will remain substantially unchanged as part of the refinancing process.
ALE’s managing director Andrew Wilkinson said this is the third CMBS issue for ALE over the last eight years.
“We are pleased with the strong market response, with the offer of both Class AB and B Notes closing oversubscribed. The offer was well received and taken up by both existing and new CMBS investors,” he added.
“ALE has captured margins that have significantly contracted in recent times and are below those indicated in our recent announcements to investors. ALE’s current weighted average debt margin for all secured debt is now 1.38% per annum with an average term of 8.4 years. The refinancing outcomes met our objectives on a wide range of measures,” he concluded.
Australian Property Journal
