Granite Real Estate Investment Trust has entered into a $185 million committed four-year senior unsecured non-revolving term facility. Through a cross currency interest rate swap, Granite has exchanged the principal and interest payments from the Term Loan for Euro denominated payments at an all-in 1.225% fixed interest rate.
According to a prepared release, Granite intends to use the net proceeds from the term loan for general corporate purposes, including to fund development and property acquisitions.
Ilias Konstantopoulos, Granite’s CFO commented that “Further to the seven-year term loan previously announced on December 12, 2018, we are pleased to have sourced additional low cost and flexible debt capital from a syndicate of leading Canadian financial institutions that will further enable the execution of our strategy. Pro forma this four-year Term Loan and the seven-year term loan previously announced, Granite’s interest-bearing debt remains entirely unsecured, provides a natural and partial hedge to our European asset base and cash flows, has a weighted average cost of 2.18%, a weighted average term to maturity of 4.8 years and is entirely at a fixed rate of interest.”
Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of industrial, warehouse and logistics properties in North America and Europe. Granite owns over 85 investment properties representing approximately 33 million square feet of leasable area.