Print

Mail

wiki links

CPI signs NT$7.2bn syndicated loan

Citi Property Investors (CPI) Asia Pacific has secured a NT$7.2 billion (US$223.1 million) syndicated loan from seven banks, the loan's leading bank Taiwan Cooperative Bank (合作金庫) said yesterday.

The syndicated loan will make up nearly 80 percent of the real estate private equity investor's reported NT$9.2 billion capital injection needed for it to invest in three office buildings in Neihu.

CPI refused to comment on the pact that Taiwan Cooperative president Chen An-hsiung (陳安雄) inked with CPI's executive vice president Aron Chan (詹偉立) during a closed-door meeting yesterday morning.

The agreement says that state-run Taiwan Cooperative, Land Bank of Taiwan (土銀) and Taiwan Business Bank (台企銀) will each give NT$2 billion while Shin Kong Bank (新光銀行), Shanghai Commercial & Savings Bank (上海商銀), the Agricultural Bank of Taiwan (農業金庫) and the Chang Hwa Bank (彰化銀行) will give a total of NT$1.2 billion.

The loan would be collateralized by CPI's three office buildings and have an interest rate of about 3.2 percent, Taiwan Cooperative said.

Local media reported that Chan has said Taiwan's commercial properties are under-priced, have a great potential for profit and that his private equity fund will be making investments in the Taiwanese market in the future.

CPI plans to raise US$3 billion in the near future, more than 20 percent of which will be injected into the property market, reports said.
This story has been viewed 1091 times.