General Growth(GGP) has announced the refinancing of seven shopping malls representing $1.7 billion of new mortgages ($1.4 billion is GGP’s share).
These seven new fixed-rate mortgages have a weighted average term of 10.3 years and generated cash proceeds in excess of in-place financing of approximately $400 million to GGP.
GGP has also been able to lower the weighted average interest rate of these seven mortgages from 5.65 percent to 5.33 percent, while lengthening the term by approximately seven years over that in place. Six of these properties have closed and the seventh property is anticipated to close in May 2011.
Additionally, GGP has also increased the capacity of its credit facility to $750 million, up from $720 million. These recent financings, when combined with cash on hand, increases GGP’s liquidity position to over $2 billion.