Treasury China Trust (formerly China Real Estate Opportunities) in which Treasury Holdings has a 40pc stake has refinanced its major property asset in Shanghai for USD480m.

TCT said that the re-financing is a five-year multi-currency loan facility for its Shanghai-based property, City Center.

The property, 100pc owned by TCT, is an office and retail complex comprising approximately 150,000sqm of income-producing commercial real estate located in the Hong Qiao District of Shanghai.

The new loan facility, which expires in June 2015 has been provided by Industrial and Commercial Bank of China (ICBC) on terms that are considerably more favourable than the outgoing loan, provided by Credit Suisse, which was due for repayment in Octoberof this year, it said.

The loan facility includes a RMB 800 million project development loan to finance 100pc of the development costs (including capitalized interest) of the City Center Extension, an 88,000 square meter retail and office complex, due for commencement in 4th Quarter of 2010.

Upon completion in 2012, this development will transform the existing City Center property into a 240,000sqm landmark project of international standard in Shanghai and underwrites the expected 100pc increase in gross rental income over the next three years.

Chief Executive Officer Richard David said, "This new loan facility, secured during a period of intense tightening of liquidity by the Chinese Central Government, serves as a strong endorsement of our ongoing proactive asset and capital management strategy and demonstrates the confidence that financial institutions have in TCT's high quality assets and management. We are pleased to secure the commitment of ICBC, the largest Chinese bank by assets, for the City Center refinancing on such favorable terms. We believe that the transaction reaffirms TCT's strong relationship with the PRC banking sector."

The financing follows the successful refinancing of Treasury Building (100pc owned by TCT), in December 2009 by CITIC Kawah Bank, part of China's CITIC Group. Following the refinancing, the currency mix of TCT's debt portfolio for the stabilized assets has a higher weighting of USD (87pc vs 75pc) which provides TCT with the opportunity to benefit from an appreciating RMB, the company said.