The Royal Bank of Scotland (RBS) agreed to a refinancing of Orco’s loan for its GSG project in Berlin. Orco signed a loan agreement granting it €269.6m from a club of five German banks. ORCO Germany S.A., the parent company of GSG, will cover the remaining €12.3m, as the outstanding debt with the RBS currently amounts to €281.9m. The new loan has a term of five years and a lower interest rate than the initial RBS loan. It also includes a minimum capex spending commitment as well as quarterly amortization, which will reduce the company’s LTV based on the current company valuation to approximately 55 percent in 2017. “By signing this new loan, we have secured the refinancing of GSG. Now, we are able to focus completely on extracting the operational and development potential of our property portfolio in Berlin,” said Oliver Schlink, managing director of GSG.
