Pricoa Mortgage Capital has provided a €55.5m seven-year senior loan to W.P. Carey, as part of the US REIT’s wider €70.5m financing package with ING Real Estate Finance to refinance six prime logistics properties in the Netherlands.
The €55.5m senior by Pricoa is its third closed, including an initial £70m refinancing for O&H Group over an 11-year term, and a subsequent top-up, while Pricoa is also in advanced talks to provide the lion’s share of a £280m 10-year senior loan to refinance Plantation Place, as revealed by CoStar News two weeks ago.
This is Pricoa maiden continental Europe real estate senior loan.
The seven-year W.P. Carey financing helps move the company a step closer to its 2013 goal of providing €600m (£500 million) of long-term, fixed-rate senior debt transactions in Europe, with the ability to do significantly more than this.
The European programme offers similar loan structures to those it offers in the US, and as in the US, Pricoa has the ability to fund individual transactions of significant size. All European debt will be denominated in local currency and secured by income-producing real estate.
Pricoa is primarily focused on office, logistics, multi-family, and retail properties in and around large population centers such as London, the major cities in Germany, Paris, and the Netherlands. Pricoa also seeks opportunities to finance transactions in collaboration with local banks, especially on the European continent.
“Many commercial property owners across Europe are looking to broaden their sources of capital as dislocation in the real estate finance market continues,” said Thor Orndahl, a managing director who oversees Pricoa’s non-U.S. mortgage platforms.
“Logistics is a preferred asset type of ours globally, and gaining exposure to Dutch and German distribution remains an important strategic objective.”
Drew Abernethy, head of European originations, said: “Pricoa is committed to working with international clients like W.P. Carey around the world, whether it’s in Europe, North America, or Japan.”