Ravelin Properties REIT Announces Extended Loan Forbearance Periods and Indebtedness Waiver

Core Viewpoint - Ravelin Properties REIT has extended the forbearance period on certain loans totaling approximately CAD$528.3 million and US$45.5 million to March 31, 2026, allowing the REIT to explore alternatives to address its financial difficulties [1][3]. Loan and Financial Details - The lender for the 120 South LaSalle office property loan in Chicago has assigned the loan, amounting to approximately US$84 million, to G2S2 Capital, which has also agreed to a forbearance period until March 31, 2026 [2]. - The REIT has agreed to an increased interest rate of 10.0% on the loans, up from a weighted average of 6.44%, effective October 1, 2025, with a cash interest rate of 6.0% and payment-in-kind interest at 4.0% [5]. - The REIT is in discussions with G2S2 Capital and other lenders regarding a potential Recapitalization Plan to address its financial situation [3][4]. Governance and Compliance - The Interest Amendment is classified as a "related party transaction" due to G2S2 Capital being controlled by an insider of the REIT, and the REIT is relying on an exemption from minority shareholder approval requirements due to its financial difficulties [6][7]. - The board of trustees has extended a waiver of a restriction on incurring additional indebtedness until December 31, 2026, to facilitate negotiations for a Recapitalization Plan [8]. Company Overview - Ravelin Properties REIT owns and operates a portfolio of well-located commercial real estate assets primarily in North America and Europe, focusing on government and high-quality credit tenants [9].