Treasury Holdings Real Estate, the trustee manager of Treasury China Trust (TCT), announced that it has secured a three-year multi-currency loan facility equivalent to US$120 million to refinance its Central Plaza asset in Shanghai.
The loan facility finalises the company’s immediate requirements for refinancing the property, after it had successfully completed the settlement of the Treasury Building facility in December 2009, which will expire in December 2012, and the City Center loan in August 2010, which will expire in July 2015.
“2010 has been a successful year for TCT in both the equity and debt markets. The completion of a number of substantial debt mandates speaks volumes for the quality of TCT’s assets, its management platform and its attractiveness in the context of Asia’s growing debt markets,” said Richard David, TCT’s Chief Executive Officer.
The company’s latest move will bring its average cost of debt to a projected 3.91 percent this year, down from 4.43 percent in 2010.
Listed on the Singapore Exchange in June 2010, TCT focus more on owning, developing and managing commercial property in China. It has already established a strong management platform of more than 80 dedicated professionals, managing and operating over 250,000 sq m of high quality commercial property, with another 150,000 sq m currently under development.
The Central Plaza loan, which will mature in December 2013, has been provided by the Citic Kawah-led consortium. It comprises RMB65 million and US$110 million, on terms more favourable than the outgoing facility loan, which will expire in July 2011. The multi-currency leverages the combined lower interest costs of US dollar loan facilities and the strengths of Central Plaza’s Renminbi-denominated rent roll.
“One of the most gratifying elements has been TCT’s ability to secure the vast bulk of its funding requirements from local Chinese banks. Achieved during a period of considerable tightening of liquidity within the Chinese banking sector, TCT has been able to demonstrate true alignment with China’s debt markets which highlights the ability of our team to fully integrate our business to local conditions,” said Mr. David.