Investors Real Estate Trust announced that IRET-71 France, LLC, a joint venture entity in which IRET Properties, a North Dakota Limited Partnership has closed on a construction loan with a borrowing capacity of up to $50.75 million. This loan was placed with PNC Bank, National Association, as Administrative Agent for the Lender. The loan has a maturity date of July 1, 2018, is interest-only until maturity, and has a variable interest rate reset each month at 2.25% in excess of 30 day LIBOR, with the rate reset to 2.10% in excess of 30-day LIBOR when the development securing the loan provides cash flow to support a 1.10 times debt-service coverage ratio.

The loan has one twelve month extension option; if this option is exercised, the loan would begin amortizing principal over a thirty year period beginning July 1, 2018.