Prime US REIT has opted to extend by a year an existing term loan and revolving credit facility that is secured by Sorrento Towers. 

 

In a July 23 bourse filing, the REIT manager says the facility had an initial maturity date of July 22. The manager has opted to exercise the first of two one-year extension options, which potentially extends the maturity date till July 22, 2026. 

 

The committed facility amount is US$72.15 million ($97.09 million), comprising a US$69.9 million non-revolving portion, which was drawn and a US$2.25 million revolving portion, which is undrawn.

 

The manager of Prime US REIT OXMU 2.2% acquired Sorrento Towers in June 2021 at its valuation price of US$146 million. Built in 1989 and last refurbished in 2020, the asset in Mira Sorrento Place, San Diego, California comprises two freehold seven-storey Class A office towers and a three-storey garage.

 

The asset is one of three properties in California owned by the REIT. As at March 31, Sorrento Towers has an occupancy rate of 96.3%. It was valued at some US$125.0 million as at Dec 31, 2023. 

 

The REIT divested One Town Center in Boca Raton, Florida earlier this month. Following the sale, Prime US REIT&rsquo s portfolio consists of 13 office properties in 12 US markets.

 

The REIT has not announced the release date of its results for 1HFY2024 ended June 30.