The bondholders of Intercapital Property Development REIT approved a 3-year extension on the company’s €5m bond. The bond principal was due on 14 August 2010. As part of the new conditions, the interest rate has been increased by 0.5pp to 9.5% yearly, payable quarterly instead of semi-annually. The two sides also agreed partial 10% principal prepayment in August this year and 2.5% prepayments every quarter starting in February 2011. Additionally, the management fee is changed from 2% of the assets to 2% of equity, thus reducing the fee amount 13-fold while the management fee of 20% of the profit will be payable after the final principal payment.