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[Alpha Biz=(Chicago) Reporter Paul Lee] Lotte Tour Development said it has succeeded in refinancing Jeju Dream Tower mortgage loans worth 780 billion won.
Through consultations with the existing shareholders, the government will extend the 743 billion won mortgage loan, which was due until the 30th of last month, by one year and receive an additional 37 billion won in loans. The total amount is 780 billion won. Considering that the stake (59%) of Jeju Dream Tower owned by Lotte Tour Development is worth about 1.73 trillion won to 1.8 trillion won, the loan-to-value ratio (LTV) is about 44%.
Interest rates have been raised from 4 to 5 percent per annum, the company explained. Refinancing at lower interest rates is possible if market interest rates fall a year after maturity. To this end, Lotte Tour Development placed a condition that the loan can be repaid early after six months without any fees.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
