Bulgarian real estate investment trust (REIT) BenchMark Fund Imoti has agreed credit lines worth a total 26.5 million euro with the National Bank of Greece and United Bulgarian Bank, part of the NBG Group.
The loans should be used within the next two years. The 25 million euro loan from NBG has an eight-year maturity, while the 1.5 million euro loan from UBB matures in 2011. The loans were secured with real estate mortgages and a special pledge on company assets.
The REIT said it would use the borrowed funds to finance four investment projects - two office buildings in Sofia, vacation and residential developments in the ski resort of Borovets and a sports facility in Kyustendil.
Three of the projects have a combined price tag of 40 mln euro, which means that the remainder will come from the proceeds of the last capital raise and from off-plan sales.
Other local REITs are also shifting their fund-raising efforts away from the dismal capital market and are looking more towards banking institutions. In early 2008, Prime Property BG REIT said that it would rely mostly on bank loans for the development of its Business Park Plovdiv project, worth 64 million euro.
FairPlay Properties REIT has also said that it would not hesitate to take out bank loans after the last capital hike raised only 60% of the amount targeted.
