PBB closes 2012 with £106m loan for LIM/Quantum’s 23 Savile Row

Deutsche Pfandbriefbank (PBB) has financed Plaza Global Real Estate Partners’ 23 Savile Row in Mayfair with a £106m five-year senior loan.

PBB logoPlaza, a joint venture between LaSalle Investment Management and Quantum Global Real Estate, bought D2 Private’s office block for £218m in cash at the end of August, reflecting a yield of 4.29%.

This subsequent acquisition finance puts the LTV at 48.6%, with the loan funded at the end of last year.

For PBB, this final UK loan is thought to bring the German property lender close to its annual target of lending £1bn against UK commercial property for 2012.

Among PBB’s 2012 UK property lending haul was:

  • The five-year £75m senior loan to Metric Income Plus Limited Partnership (MIPP), the £150m joint venture retail park fund between newly-merged Metric Property Investments and London & Stamford with the Universities Superannuation Scheme.
  • A £75m five-year loan to refinance British Land and Schroder Property’s £1.6bn Hercules Unit Trust, the UK’s largest specialist retail warehouse fund, in a total £150m package with Helaba Landesbank.
  • A five-year £40m senior debt facility to finance a Tesco-let prime logistics property in Daventry for the Prologis European Properties Fund II, one of Europe’s largest funds of its kind with 210 prime properties and a gross market value of around €3bn.

This is the first acquisition Plaza has made since inception earlier in the year, investing in large real estate assets around the globe. With leverage, Plaza has $1bn gross of initial buying power.

23 Savile Row is a trophy property, which was developed in 2009, and comprises nearly 103,000 sq ft with floor to ceiling glazed façades on three sides.

The space is let to a high-end gallery on the ground floor and several financial companies in the six floors above.

The property has received numerous awards, including West End Development of the Year at the Office Development Awards (2009). The space is let to a high-end gallery on the ground floor and several financial companies in the six floors above.

Charles Balch, head of real estate finance international at Deutsche Pfandbriefbank, said: “Plaza is a new client for the bank and LaSalle is an existing client. Therefore the transaction shows the Bank’s appetite to lend both to new and existing clients in pursuing its growth strategy.”

Jamie Lyon, European finance director at LaSalle, said: “LaSalle has a longstanding and deep relationship with pbb both in the UK and across the Continent. The financing of 23 Savile Row cements that relationship even further and Plaza is delighted to have closed this and to have financed it with pbb.”

PBB closed a flurry of deals at the end of last year, including one of the largest refinancings in recent years: the €495m revolving credit facility for Sweden’s AB Sagax, secured by 94 industrial and warehouse properties in Sweden and Finland.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
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