Apollo-Rida, a joint venture between AREA Property Partners and Rida Development Corporation, and AXA Real Estate Investment Managers (REIM) have refinanced their joint venture 28-strong shopping centre, retail park and hypermarket portfolio in Poland with €650m in senior debt from six banks and a €55m junior loan.
The six bank senior debt refi was completed by Hypothekenbank Frankfurt – formerly named Eurohypo and which led the original May 2004 €615m circa 10-bank lending consortium – providing €89m, Santander subsidiary, Bank Zachodni, provided €70m and Bank Pekao took €41m, CoStar News has learned.
The senior loan margin is thought to be around 300 basis points over three-month EURIBOR.
In addition, Apollo-Rida and AXA REIM have separately secured a €55m junior loan from Abu Dhabi Investment Authority (ADIA) and AXA Real Estate’s debt fund, CoStar News has learned.
The Aareal Bank-led €650m senior ticket, based on a circa €1.2bn current portfolio valuation, reflects a senior LTV of around 54% and a whole loan LTV of around 59%. The new eight-strong lender consortium funded around two weeks ago.
Rida Development Corporation (RDC) is the portfolio’s property manager.
Karl Wilson, general manager Central & Eastern Europe (CEE) at Aareal Bank, said: “We are happy that we have been able to realise this complex transaction with such well-known clients and partners. This has been possible thanks mainly to the excellent cooperation of all those involved.”
The Poland shopping center portfolio was initially acquired in May 2004 by the Apollo International Real Estate Fund in a joint venture with RDC for just over €700m, financed by a €615m Eurohypo-led banking consortium.
Area Property Partners, which acquired the equity stake held by the Apollo International Real Estate Fund when it spun out of Apollo Global Advisors in 2000, owns 51% of the equity in Apollo-Rida and AXA REIM owns 49%.
Each of the 28 shopping centres, retail parks and hypermarkets in the Metro Apollo-RIDA portfolio were built between the end of the 1990s and in the early 2000s, but are all in good locations, backed by anchor tenant across the portfolio, Metro.
Metro is Poland’s largest diversified retailers, taking significant space in each of the centres with established local chains Real, the hypermarket group, Media Markt, the consumer electronics chain, and the do-it- yourself chain, Praktiker.