Evans Randall has secured a seven-year €182.5m whole loan to refinance the Königsbau Passagen shopping centre in Stuttgart with a Allianz and European Real Estate Debt (ERED) II, the listed mezzanine fund managed by DRC Capital.
Allianz’s €145m senior loan and the DRC Capital-managed ERED II’s €37.5m mezzanine facility replace the maturing HSH Nordbank acquisition facility which Evans Randall sourced when the shopping centre was bought in 2006 for €220m.
CoStar News understands that the €145m senior loan priced at a 3.5% annual fixed with no amortisation for the first two years.
Evans Randall’s completed refurbishment of the German shopping centre, including creating new retail units and a food court has increased Königsbau Passagen’s total annual rent roll by €700,000, contributed to the increased value of the asset to €232m.
This improved valuation puts the senior LTV at 62.5% and the whole loan LTV at 78.7%.
In a statement, Evans Randall said that the two lenders were chosen after requesting term sheets from UK, German and US banks, European insurance lenders and debt funds.
Königsbau Passagen, formerly home of the Stuttgart’s Stock Exchange, comprises 290, 625 sq ft of retail space; 193,750 sq ft of office space, as well as featuring more than 70 retail, dinning and leisure outlets across five floors. Anchor tenants include Saturn, Vapiano and Deutsche Post.
Allianz has a European commercial real estate loan book of €1.3bn with plans to grow its senior debt exposure considerably over the medium term. Last October, Allianz Real Estate recruited Helaba France managing director, Roland Fuchs, as head of European real estate finance.
Allianz’s maiden European senior debt deal came in the summer of 2011, a €315m loan to the retail fund, DWS Access Deutsche Bank Tuerme, which owns Deutsche Bank’s two-tower headquarters in Frankfurt.