Hypo Real Estate Bank AG is providing finance to the British Ability Group for setting up a German retail portfolio. The bank will provide a credit line of 100 million, and will enable this line to be drawn down by various (wholly-owned) subsidiaries. Individual loan agreements will be signed with all subsidiaries within this line.
This credit line will enable the Ability Group to purchase property in Germany, whereby it will have to comply with certain purchase and portfolio criteria. The Group has already purchased six supermarkets in Northrhine-Westphalia and Lübeck. This innovative form of financing enables property companies to be acquired as part of share deals and to be sold on subsequently. The customer has to meet certain financial covenants at the level of the individual property companies and also at the level of the holding in order to be able to utilise the credit line.
Frank Lamby, responsible for the "Commercial Real Estate Origination" unit in the Management Board of Hypo Real Estate Holding AG: "We are pleased to be able to support the Ability Group in its plans to expand in the German market with a customised and flexible financing solution. It enables strategic steps to be implemented quickly."
Andreas Panayiotou, Chairman of the Ability Group: "Ability is very happy to be working with Hypo Real Estate Bank. We are developing our interests in the German market and across Europe over the coming years and it is very pleasing to be able to work with an experienced and expert bank such as Hypo Real Estate Bank. We look forward to completing more deals in the future with their support."
Source: Hypo Real Estate