PFI secures new five-year banking facility

( PFI secures new five-year banking facility and indicates a stable full-year revaluation

Listed industrial property investor Property For Industry (PFI) has secured a new five-year bank debt facility of $150 million.

PFI general manager Ross Blackmore said the refinancing had taken place well in advance of the expiry of PFI’s existing facility, which extended until September 2011.

The new facility is provided by a syndicate comprising ANZ National Bank Limited and Commonwealth Bank of Australia. Mr Blackmore said the tenure of the new facility, and the diversity provided by having two major trading banks as banking partners, were pleasing.

He added that the terms of the new facility had been assisted by the strength of PFI’s balance sheet, with gearing currently at 30.9 percent following the sale of four properties during the year for more than $15 million.

Mr Blackmore also noted that PFI’s annual portfolio revaluation is in progress, with information to date indicating that the values of PFI’s properties have stabilised as expected and a reduction in portfolio value of approximately $1 million or 0.3 percent (subject to audit, and confirmation by valuers at the end of the month) is anticipated. Yields and rents had also been relatively stable throughout the year.

The outcome of PFI’s revaluation, following audit and confirmation, will be announced as part of the company’s annual financial results in February 2011.

PFI is New Zealand’s only listed company specialising in industrial property investment, and is managed by AMP Capital Investors. Following the sales during the year, PFI’s portfolio of 51 properties now has a total gross value of approximately $353 million.

Media Release on 24 December 2010 from PFI via NZX.