Castellana Properties has entered into a €254 million financing agreement with Aareal Bank for a five-year term until September 2029. Banco Santander and BBVA are also participating in the transaction, allowing the company to diversify its sources of financing.
This agreement facilitates the refinancing of the loan associated with the El Faro (Badajoz), Bahía Sur (San Fernando de Cádiz), Los Arcos (Seville) and Vallsur (Valladolid) shopping centres, and supports the financing of active management and repositioning projects for these shopping centres, helping to increase the value of its portfolio.
As a result of the transaction, Castellana Properties has repaid €50 million of previous debt, thereby reducing its indebtedness and improving its net loan-to-value (Net LTV) ratio, which has fallen from 39% to 34%, according to the latest earnings report. In addition, the average duration of the company's debt has been extended from 2.7 to 5.1 years, compared to the data in the latest financial results. The loan has been signed at a fixed rate, which significantly minimises the company's exposure to possible interest rate increases, keeping the variable rate financing below 10%.
Debora Santamaria, CFO of Castellana Properties, said: "This agreement is a new milestone for our company, as it allows us to add more value to our portfolio while continuing to grow. At Castellana Properties, we remain firmly committed to the retail sector".
