Fortress unit to refinance 1 bln euro loan, scraps asset sale

FRANKFURT Mon Feb 4, 2013 1:22pm EST

FRANKFURT Feb 4 (Reuters) - German real estate group Gagfah , controlled by U.S. investor Fortress, is to refinance a 1 billion euro ($1.4 billion) loan of its Woba unit, leading it to scrap the sale of the division.

"Upon the completion of this transaction, Gagfah will have made a significant step towards resolving its 2013 debt maturities," the company said on Monday.

Bank of America will lend Gagfah the money, a person close to the German real estate company said.

Reuters reported last month that Gagfah had cancelled the sale of the Woba portfolio, consisting of 38,000 flats in the eastern German city of Dresden.

Bidders included peer Deutsche Wohnen, but none offered more than 1.6 billion euros - a price Gagfah was unwilling to accept as it was 200 million less than it valued the flats at, the sources told Reuters in January.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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