Blackstone Mortgage Trust (BXMT) has refinanced KKR’s €102.8m all-cash acquisition of two Spanish retail and leisure parks with a €72m five-year whole loan, reflecting the US and European-focussed mortgage real estate investment trust’s maiden Spanish loan.
KKR acquired the 523,589 sq ft Nassica Retail and Leisure Park, in Getafe in the southern outskirts of Madrid, and the 180,233 sq ft Vista Alegre Retail Park, a retail park in Zamora, from Pillar Retail Europark Fund (PREF) in January for €102.8m.
PREF, 65.3% owned by British Land, is a matured closed-ended fund now managed by INTERNOS.
Nassica Retail and Leisure Park benefits from the mix of leisure operators (anchored by a Cinesa cinema), leading retailers such as Conforama, Worten, Toys R Us and Merkal as well as a Carrefour hypermarket and.
Vista Alegre Retail Park is let to 14 operators including anchors AKI, Froiz and El Corte Inglés Oportunidades.
KKR is working with a local retail partner, Neinver, who developed Nassica and manages the adjacent outlet center. The business plan consists in repositioning Nassica and improving the tenant mix through a capex program to increase rent-roll and asset value.
The two Spanish retail assets were previously refinanced by Deutsche Pfandbriefbank (PBB) with a €61m senior loan.
BXMT had an unpaid balance of $3.48bn and is financed with six separate six credit facilities totalling $2.9bn, including two separate sterling-denominated facilities together accounting for £403m.
In March, BXMT extended a £78m development to finance Rowan and GI Partners’ £154.8m valuation of Aldwych House, which in undergoing a speculative redevelopment.
BXMT’s two-tranche floating rated loan is priced at above 400 basis points over LIBOR and includes a £28m facility for a capex line.