Helaba extends C&R and Ares €141m three-year senior loan above 70% leverage

Capital & Regional and Ares Management have refinanced a slimmed German retail warehouse parks and hypermarket portfolio with Helaba Landesbank Hessen-Thüringen which has extended a three-year €141m senior loan.

helaba logoHelaba’s €141m senior loan refinances a larger portfolio which was secured by legacy loans from Bank of Scotland, Eurohypo and Deutsche Bank.

CoStar News understands that Helaba priced the loan at a circa 73% LTV, which put the portfolio’s value at around €193m as measured by DTZ, in the low 200 basis points market over three-month EURIBOR.

Financing underbidders include ING Real Estate Finance and SEB, the Swedish bank, in a tender process which began early last year.

The refinancing was complicated by the high leverage sought on a senior basis but the defensive nature of the portfolio together, including stable cashflows and a long average lease length, provided sufficient room for scheduled amortisation over the three year term.

Helaba’s appetite to lend into the 70% LTV range also reflects the bank’s confidence in the out of town German retail market more broadly.

Capital & Regional and Ares’s joint venture was established in 2008 and originally comprises 25 predominantly food-anchored retail warehouse parks and hypermarkets with an average remaining lease term of seven years and a gross asset value of over €400m.

Garigal Asset Management is the joint venture’s asset manager in Germany.

All parties declined to comment.


About CoStar News

Finance Editor, CoStar News
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