SPH Reit has obtained A$205 million (S$190.8 million) in secured loans from Australian bank Westpac to finance its proposed acquisition of a half-stake in Westfield Marion Shopping Centre.

The A$670 million deal for the freehold mall in Adelaide, South Australia, will also be funded by a $300 million issuance of perpetual securities in August, plus $164.5 million raised from a private placement last month.

SPH Reit said on Thursday night that the Westpac facilities comprise an A$80 million single-draw term loan, a A$120 million single-draw term loan and a A$5 million revolving term loan.

The two single-draw facilities will be used to fund the acquisition, while the revolving term loan will be used for working capital in relation to the property.

SPH Reit's gearing is expected to increase to 29.5 per cent from 27.5 per cent once the loans are drawn down in full, the Reit's manager said.

The other 50 per cent stake in Westfield Marion will be held by Scentre Group.

The deal, signed last month, is expected to be concluded by the end of the year.

Mr Leong Horn Kee, chairman of the manager, told unit holders at the annual general meeting on Nov 27 that the Reit is taking a longer-term view of the asset, and has plans to further redevelop the area.

Singapore Press Holdings holds a near 70 per cent stake in SPH Reit. SPH Reit units closed unchanged at $1.07 yesterday.

THE BUSINESS TIMES