Lone Star buys c.€185m CEE Aviva portfolio with €120m PBB and UniCredit loan

Lone Star has acquired a 10-strong pan-European mixed-use real estate portfolio for around €185m from Aviva Investors, financed with a €120m loan from Deutsche Pfandbriefbank (PBB) and UniCredit Bank Austria AG.

Lone Star logo - newPBB and Unicredit took a 50:50 participation in the facility, which reflects just under 65% LTV, CoStar News understands.   

The portfolio consists of office buildings predominantly in Warsaw and Prague, as well as retail and industrial assets in Poland, the Czech Republic, Slovakia and Hungary, and was acquired by Lone Star Real Estate Fund III.

The transaction closed on Tuesday. PBB and UniCredit acted as joint arrangers and lenders, PBB also has the role as facility agent.

Separately, Aviva is launching its final clean up legacy commercial mortgage loans sale this week with the offer of a major £2.5bn UK portfolio sale, in a trade which is expected to achieve an above par sale price. For the full story, please click here.

In a statement, Charles Balch, head of international clients, UK & CEE at PBB, said: “We are very pleased to support Lone Star in their investment in Central Europe, together with our colleagues at Unicredit Bank Austria. This is another fine example of a pan-CEE portfolio financing, which only a limited number of financiers are able to arrange. We are looking forward to do more business with Lone Star in CEE and indeed across Europe.”

Lukasz Motyl, head of real estate CEE at UniCredit Bank Austria AG, added in the statement: “Central Eastern Europe is our key market: we are the largest bank in the region in terms of total assets and we serve our clients in all the 13 geographies in which we have a local bank. We are very pleased to have been able to support Lone Star in this major investment in this region.”


About CoStar News

Finance Editor, CoStar News
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