Appeninn welcomes new tenant, signs loan agreement
Under what it tags as “significantly more favorable conditions than before”, Appeninn Nyrt. is financing its more than 5,000 sqm real estate in Hungary’s Biatorbágy, into which the Hungarian subsidiary of Remmers moved during the summer, according to a press statement sent to the Budapest Business Journal this morning. Appeninn said it intends to spend the released resources on further property investments and the distribution of dividends.
During the summer, Appeninn concluded a five-plus-five year lease agreement with the Hungarian subsidiary of Remmers, which holds a leading position in Europe in the area of timber protection, surface treatments, as well as building maintenance and historic preservation, in its property in Biatorbágy. The 5,160 sqm plot and the gross 1,627 sqm center it hosts have very favorable capabilities, according to the press statement. The “A” category office and the real estate, built in accordance with the standards pertaining to warehouses, are located just 600 meters from the intersection of highways M0 and M1, 4 km from highway M7 and 12 km from the city center of Budapest.
After signing a loan agreement with the Hungarian branch of Oberbank AG, Appeninn (which is listed on the Budapest bourse) says it has financed its Biatorbágy-property “with a credit of more favorable conditions than before”. The EUR 530,000 loan will now expire in 2031, rather than 2023. Appeninn says the extended term of the loan and the + 2.5% EURIBOR interest could half its monthly installments.
In recent years, the company has renewed the bank financing of its real estate portfolio with more favorable conditions in several cases, which has resulted in an improvement of its cash generating ability, Appeninn says.
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