PBB closes €169m VALAD/Aviva loan to take December haul to near €1bn

Aviva Investors’ and Valad Europe have agreed a three-year extension to its €169m senior facility with Deutsche Pfandbriefbank for their joint venture Central European Industrial Fund (CEIF), in a flurry of lending deals closed by German lender in the final month of last year which nears €1bn.

The joint venture fund primarily invests in multi-let industrial estates in Poland, the Czech Republic, Hungary and Romania, and has the discretion to invest in the Baltic States, Slovakia, Slovenia, Croatia and Bulgaria.

PBB closed a string of deals in December, ensuring that the final month of last year was one of the German lender’s most prolific in recent quarters. PBB also closed:

  • a € 65m facility to Prime Office Germany A/S, a Norwegian investment fund managed by CR Investment Management, for the refinancing of a portfolio of five prime offices in Hamburg, Frankfurt and Dusseldorf, including the “Neuer Zollhof” in Dusseldorf’s Media Harbour area.
  • a €50m financing to the Department of Bouches-du-Rhône in France. The loan will be used by the local authority to finance the construction and the renovation of schools and to develop the departmental road infrastructure.
  • a £106m (€129.9m) five-year senior loan for Plaza Global Real Estate Partners’ 23 Savile Row in Mayfair. Plaza, 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%.
  • the €495m revolving credit facility for Sweden’s AB Sagax, secured by 94 industrial and warehouse properties in Sweden and Finland.

These five loan alone amount to circa €908.9m, relative to the sterling currency conversion for the €106m Plaza loan, while there are understood to be more December deals to be published in the coming weeks in addition to deals which the bank will not publicise.

PBB acted as arranger, sole lender and hedge provider for all facilities.

This December flurry of deals is part of what is expected to be the most prolific quarter of deal closures in years for PBB. During the final quarter of last year, among the deals PBB closed were:

  • a €85m senior loan financing Catalyst Capital’s acquisition of a 30-strong retail property portfolio in Germany valued at €150m, taking the senior LTV to 56.6%
  • a five-year £75m senior loan last Friday with the £150m Metric Income Plus Limited Partnership, a joint venture retail park fund between Metric Property Investments, which has just completed a merger with London & Stamford, and the Universities Superannuation Scheme (USS).
  • a €69m senior facility to the fund Heitman European Property Partners IV (HEPP IV) for the acquisition of Marynarska Business Park, a prime office park in Warsaw.
  • a €36m senior debt facility financing Invesco Real Estate’s western Paris Alpha Park II retail park
  • A share of €287m four bank club senior debt facility for Locafimo, a subsidiary of Société de la Tour Eiffel.

In the first nine months of 2012, PBB closed €2.6bn in commercial real estate deals throughout Europe, with €1.4bn closing in the third quarter alone.

PBB has said that its annual CRE lending haul will be lower than forecast in February, due in part, to a sluggish environment for financings in the first quarter of the year.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
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