CMF Briefs From Principal, Merchants Capital, Paramount Group
Principal Real Estate Income Fund Increases Monthly Distributions
The Principal Real Estate Income Fund, traded on the New York Stock Exchange under the “PGZ” symbol, announced a 14.29 percent increase in its monthly distributions to $0.10 per share beginning in February. Based on the fund’s current net asset value share price of $17.79 as of market close on Dec. 27, 2021, the distributions represent an annualized distribution rate of 6.75 percent.
Commercial and Multifamily Briefs from Merchants Capital, Paramount Group
Merchants Capital Closes Two Tax Credit Equity Funds Totaling $233M
Merchants Capital, Carmel, Ind., closed two tax credit equity funds totaling more than $233.4 million.
Merchants Capital Tax Credit Equity Fund V L.P. represents the company’s first national multi-investor fund with a total capital raise of $172.5 million from 16 institutional investors including both banks and insurance companies. Merchants Fund V will infuse equity into 18 affordable housing properties that will create or preserve more than 1,958 affordable homes in 11 states.
Merchants Capital also closed Merchants Capital SW Tax Credit Equity Fund III L.P., a $60.9 million proprietary fund with a Fortune 500 company that will provide equity capital into eight affordable housing projects structured with Low-Income Housing and Historic Rehabilitation Tax Credits in three states. The investment in Merchants III will create 593 affordable homes in three states and revitalize historically significant housing properties in San Antonio and Kansas City.
Paramount Group Refinances Revolving Credit Facility
Paramount Group, New York, refinanced its existing senior unsecured revolving credit facility with a new $750 million senior unsecured revolving credit facility that matures in March 2026, with two six-month extension options.
The interest rate on the new facility is 115 basis points over the secured overnight financing rate with adjustments based on the term of advances, plus a 20 basis point facility fee.
The facility’s Joint Bookrunners included BofA Securities Inc., Wells Fargo Securities LLC, JPMorgan Chase Bank N.A. and U.S. Bank National Association. The Joint Lead Arrangers were BofA Securities Inc., Wells Fargo SecuritiesLLC, JPMorgan Chase Bank N.A., U.S. Bank National Association, Citizens Bank National Association and Capital One National Association. Bank of America, N.A. served as Administrative Agent.
