SCA Property Group has refinanced $600 million of its debt through Australia's four major banks, reducing the average-weighted cost of its debt to 4.8 per cent from 5.3 per cent.
The property trust, which owns shopping centres at 76 locations in Australia and New Zealand, has increased the weighted-average debt maturity of the loans to 4.1 years from 3.6 years.
Mark Fleming, SCA’s chief financial officer, says the property trust’s refinancing was for three loans: a three year, $150 million debt, a four year, $225 million loan and a five year, $225 million loan.
“We’re a very safe and secure credit,” Fleming told DataRoom, adding that 60 per cent of SCA’s tenants are supermarket operators Woolworths and Coles. The weighted average lease period of its tenants is 15 years.
Australia & New Zealand Banking Group Ltd, Commonwealth Bank of Australia Ltd, National Australia Bank Ltd and Westpac Banking Corp are SCA’s lenders.