(To read more on the industrial market, click here.)
SAN FRANCISCO-Subsidiaries of locally based industrial REIT AMB Property Corp. have entered into a loan agreement for a $305-million financing. The financing is secured by 60 buildings, including most of the Alvarado Business Center in San Leandro.
The lenders are Prudential Insurance Co. of America and Prudential Mortgage Capital Co. Approximately $160 million of the loan will be securitized and sold on the open market. The remainder will be held in the lenders' general accounts.
Concurrent with the loan closing, the subsidiaries delivered four promissory notes to the two lenders, each of which matures on March 5, 2012. One note, issued to Prudential Mortgage Capital, has a principal of $160 million and an interest rate that is fixed at 5.29%.
The three other notes were issued to Prudential Insurance. One is $40-million note with an interest rate of 81 basis points above the one-month Libor rate, a second has a principal of $84 million and a fixed interest rate of 5.90%, and the final note has a principal of $21 million and bears interest at a rate of 135 basis points above the one-month Libor rate.
The loan agreement contains affirmative covenants, including financial reporting requirements and maintenance of specified insurance coverage, and negative covenants, including limitations on non-affiliated transfers, mergers and consolidations. In the event of a default, the lenders may elect to accelerate the outstanding principal and accrued and unpaid interest under the loan agreement.
AMB also said Wednesday that is has broken ground for Siziano Business Park, a planned 1.5-million-sf development in Milan, Italy. The publicly held industrial REIT is developing the park in partnership with Redilco Group, a Milan-based full service real estate company.
The development site is located along route SP40, which connects the A1 and the A7 motorways, connect southern Italy and the Port of Genoa, respectively. A 437,000-sf building is under construction and slated for completion before the end of the year.
AMB's portfolio in Europe totals approximately 7.7 million sf but it does not yet have any facilities in Milan. Its existing markets in Europe include Amsterdam, Hamburg, Dusseldorf, Paris, Lyon and Madrid.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
