Japan Residential Assets Manager, the manager of Saizen Real Estate Investment Trust (Saizen REIT), says Godo Kaisha Choan, a TK (Tokumei kumiai or silent partnership) operator of Saizen REIT, has entered into a facility agreement with Societe Generale to refinance its JPY 5.9 billion ($90.2 million) loan, which was originally obtained from Societe Generale and due to mature in July 2011.

The refinanced loan is for a term of three years up to 15 June 2013. The refinancing terms include the collateralisation of the property portfolios of two TK operators of Saizen REIT, namely GK Choan and Yugen Kaisha Kokkei, as security for the refinanced ;oan. The property portfolios of GK Choan and YK Kokkei are valued at an aggregate of JPY 11.8 billion ($180.4 million) based on valuations as at 30 April 2010.

Although the refinanced ;oan is subject to a variable interest rate, GK Choan intends to enter into an interest rate swap arrangement to fix the annual interest rate on the refinanced loan throughout its term. The refinanced loan also has an amortising feature with an initial principal repayment of JPY 140.5 million in June 2010 and quarterly principal repayments of JPY 40.5 million thereafter.

Societe Generale will also charge an up-front fee of JPY 59 million.