Quartiers secures EUR 18.5 million in financing at a reduced interest rate, freeing up cash flow for growth and allowing resumption of dividends on preference shares
Quartiers Properties AB (publ) (“Quartiers” or “the Company”) has today, in line with a previously communicated plan, refinanced the loan with DeShaw that the company took out in 2020 in connection with the outbreak of Covid-19 in Europe. The refinancing of the loan removes the obstacles preventing the Company from paying dividends on its preference shares. The new lender is Alteralia Real Estate Debt FIL (“Alteralia”). The EUR 18.5 million loan is secured against the Boho Club and CFS Residential properties, as well as pledges in a number of the Company’s subsidiaries. Of several possible financing options, including bank financing, the Alteralia loan was considered to be the most flexible choice with regard to the sum loaned and the securities posted. It was also viewed as the option that provides Quartiers with the best opportunities to free up and raise new capital for additional expansion.
The interest payable on the new loan consists of a variable part and a base rate of 5%. This base rate may rise in line with the 3-month Euribor rate (“EURIBOR 3M”) in the event that EURIBOR 3M exceeds zero. The variable part of the interest rate can fall from the initial 1.50% to 0.75% if the Company’s loan-to-value ratio on the pledged assets decreases from the current level of around 58% to below 45%.
The new Alteralia loan allows the company to arrange other debt financing and to acquire new assets. Security for the new loan with Alteralia is limited to the properties around the Boho Club, which means that the Company can take out separate financing for the construction of, for example, Ocean View (project to build and sell 60 apartments), and freely utilise the cash flow from housing sales for new investments and projects.
Moreover, Quartiers is no longer prevented from paying dividends on its preference shares. The Board will shortly be presenting suggestions for a plan for when and to what extent dividend payment will recommence, as well as information about when repayment of accrued preference share dividends can be made. A resolution from the General Meeting is required to allow resumption of dividend payments.
The refinancing package entails a reduction of the annual interest costs of around SEK 12 million. The loan has a duration of five years, with the option of early repayment at no extra cost after two years.
Quartiers Properties AB (publ) is required to disclose this information under the EU Market Abuse Regulation. This information was provided for publication through the agency of the contact person above on 3 June 2022 at 15:15.
For additional information, please contact:
Quartiers Properties
Marcus Johansson Prakt, CEO
Email: marcus.prakt@quartiersproperties.se
Phone: +46 72 018 5998
Website: www.quartiersproperties.com
The company in brief
Quartiers Properties is a Swedish property development company which focuses on excellent design and quality, and is active on the Spanish Costa del Sol. The company was founded in 2014, since when it has built up a portfolio of investment properties and project properties. The company develops, sells and rents out properties.
Quartiers Properties owns and manages Boho Club, which is a boutique resort in Marbella’s Golden Mile district with a restaurant and 30 hotel rooms. The project has won awards for its design and architecture, and since its launch in 2019, both the hotel and the restaurant have established themselves as leading venues in Marbella. Visit Boho Club website www.bohoclub.com to book a hotel room or reserve a table at the restaurant. The restaurant is open daily, serving breakfast, lunch and dinner.
Quartiers Marbella Apartments is an apartment complex in Benahavís, the neighbouring municipality to Marbella, where Quartiers runs apartment rental operations. The apartments are perfectly ideal for short- and long-term accommodation and are popular among families, as well as groups visiting Marbella for leisure purposes, fitness holidays or to play golf. Visit our website www.quartiersmarbella.com to book your apartment.
Hacienda Collection is an apartment project in Benahavís just outside Marbella, where Quartiers Properties is selling apartments that are ready for immediate occupancy. Located in a gated community featuring wonderful views of the Mediterranean, the apartments feature a generous, open floorplan with large windows, high-end kitchen, separate laundry room and 2–3 bedrooms. The spacious terraces offer plenty of scope for spending quality time with family and friends. Visit the website for additional information and to book an online or in-person viewing: www.haciendacollection.es.
Mangold is the Certified Adviser to the company. Mangold can be contacted on +46 8 503 015 50 or by email to ca@mangold.se.