PPHE Hotel Group refinances existing loan with Aareal Bank AG

(Sharecast News) - Hospitality real estate PPHE Hotel Group has entered into an agreement to refinance its existing loan with Aareal Bank AG in relation to Park Plaza London Riverbank. PPHE said on Thursday that the refinancing extends its existing 2016 facility with Aareal from its original maturity date of June 2026, with a new maturity date in June 2030.

Under the new terms, the £95.8m facility will continue to attract an all-in fixed interest rate of 3.248% until the original maturity date of June 2026. Following this, 85% of the loan will bear a fully fixed interest rate of 5.72% until maturity, with a competitive floating interest rate applying to the remainder of the loan.

Additionally, under the new terms, the loan will no longer be subject to amortisation, which was expected to partially offset the impact of the increased interest on cash flow.

PPHE added that the new facility was non-recourse and will be secured by Aareal's existing security package, including a mortgage over the hotel.

Chief financial officer Daniel Kos said: "This extended facility continues our strong relationship with long-standing lender, Aareal Bank AG. The group's high-quality and stable asset base in key city-centre locations, such as Park Plaza Riverbank in London, enable us to secure long term financing on attractive rates"

As of 0935 GMT, PPHE shares were down 1.59% at 1,732p.

Reporting by Iain Gilbert at Sharecast.com