CDI fund manager Trevor Hardie said the $300 million in debt is divided into three equal tranches, with one tranche due for renewal in July 2013.
“That [tranche] had to be refinanced in any course, but with the favourable pricing in the market we took advantage and refinanced the entire $300 million,” Mr Hardie said.
The debt was refinanced through the Commonwealth Bank and Westpac, which has provided debt to CDI since its inception, he said.
Refinancing has extended the average term of CDI’s debt facility to 3.2 years, which means the group will have no “refinance risk” until the 2016 financial year, he said, adding that before the refinance the average length of the group’s debt was one year.
The weighted average margin of the total debt facility has been reduced from 181 basis points to 148.
The lower cost of debt across the portfolio will “drive into earnings growth and distribution growth”, Mr Hardie said.
CDI had total assets of $882 million as of 31 December 2012 and was invested in 27 properties, with 22 located in Australia and five in France
“[Our properties in France represent] 5 to 6 per cent of the portfolio. Our stated aim is to exit France and become 100 per cent Australia-domiciled – but that’s a staged exit over the medium term,” Mr Hardie said.
