Australia-based RNY Property Trust's investment manager, Aurora Funds Management Ltd., executed a loan modification deed with the company's U.S. lender, Acore Capital, regarding a loan default, with RNY expecting to undertake a capital raise to fund remaining obligations.
The default was on a portfolio of five office properties in the New York Tri-State area.
RNY Australia Operating Co., which is 75% owned by RNY Property, has paid down the existing loan by US$7.4 million. Another roughly US$1.3 million is payable Nov. 15 and another US$1.5 million is required to replenish lender reserve accounts, short-term fund and associated costs.
The lender has agreed to waive US$4.4 million in accrued default interest in exchange for the paydowns and replenishment of reserve accounts, conditional upon there being no further defaults.
The lender also agreed to provide a US$16.6 million facility to fund the capex and leasing costs associated with the company's proposed turnaround strategy.
Aurora was acquired to acquire the 25% minority interest held by RXR in RNY Australia as a requirement of the loan modification. The stake acquisition has been completed.
The interest rate margin is unchanged.