Cambridge Industrial Trust has entered a $100 million unsecured loan facility with HSBC. The loan consists of a $25 million term loan facility and a S$75 million revolving loan facility. Usually when a REIT takes up a loan, there will be a few questions in my mind.
- Did the REIT run into debt?
- Is the REIT expanding or acquiring new property?
Why did Cambridge Industrial Trust take up a loan?
The term loan of S$25 million will be used to refinance the existing facility granted by National Australia Bank Limited. The S$75 million revolving loan will be used to finance Cambridge Industrial Trust working capital. (more…)