Prime US REIT has opted to extend by a year an existing term loan and revolving credit facility that is secured by Sorrento Towers.
In a July 23 bourse filing, the REIT manager says the facility had an initial maturity date of July 22. The manager has opted to exercise the first of two one-year extension options, which potentially extends the maturity date till July 22, 2026.
The committed facility amount is US$72.15 million ($97.09 million), comprising a US$69.9 million non-revolving portion, which was drawn; and a US$2.25 million revolving portion, which is undrawn.
The manager of Prime US REIT OXMU acquired Sorrento Towers in June 2021 at its valuation price of US$146 million. Built in 1989 and last refurbished in 2020, the asset in Mira Sorrento Place, San Diego, California comprises two freehold seven-storey Class A office towers and a three-storey garage.
The asset is one of three properties in California owned by the REIT. As at March 31, Sorrento Towers has an occupancy rate of 96.3%. It was valued at some US$125.0 million as at Dec 31, 2023.
The REIT divested One Town Center in Boca Raton, Florida earlier this month. Following the sale, Prime US REIT’s portfolio consists of 13 office properties in 12 US markets.
See also: RHB maintains ‘buy’ call on Prime US REIT with unchanged TP
The REIT has not announced the release date of its results for 1HFY2024 ended June 30.
Units in Prime US REIT rose 0.3 US cents, or 1.61% up, at 18.9 US cents at market open on July 23.
