HSH Nordbank AG has provided finance for the purchase of a residential property portfolio by BGP, the joint venture between the Babcock & Brown Group and the GPT Group, within the context of a share deal. The size of the finance deal is €120 million.
Most of the properties in the portfolio are located in Berlin and the Rhine-Ruhr area. They comprise 4,300 residential units with total floor space of 260,000 m² plus 150 commercial units with total floor space of 16,700 m². The buyers view the portfolio as a long-term investment, but they do not rule out the sale of individual units.
"The portfolio is heavily diversified, thereby broadly spreading the rental risks," said Claudio Lagemann, Head of the Real Estate Business Unit of HSH Nordbank. "Babcock & Brown is an experienced and successful investor in residential real estate with proven expertise in managing residential properties."
HSH Nordbank had been doing business with the Babcock & Brown group of companies since 2003. Since then the Bank has financed the purchase of several residential portfolios on behalf of companies within the Group.
Source: HSH Nordbank