Tuesday, 16 December 2014
Orchard Street secures €60 mln financing facility from pbb Deutsche Pfandbriefbank (UK)
Orchard Street Investment Management, the specialist commercial property investment manager, has entered into a new £47.75 mln (approx. €60 mln) five year term loan with pbb Deutsche Pfandbriefbank secured against St Andrew’s Quay Retail Park, Hull.
Orchard Street acquired St Andrew’s Quay on behalf of Orchard Street UK Prime Property Partnership in September 2014 for £95.55 mln (approx. €120.1 mln) from Threadneedle Investments. The purchase price reflected a net initial yield of 6.1%.
The 327,000 ft² (approx. 30,379 m²) modern, multi-let retail warehouse scheme is situated two miles to the west of Hull city center and has a frontage onto the Humber estuary. Currently fully let with a WAULT of 11.1 years, the park is anchored by a B&Q Warehouse on a 16 year unexpired RPI linked lease. Other tenants include Halfords, Curry’s, Sofaworks, DFS, Carpetright, Pets at Home and PC World as well as restaurant chains Frankie & Benny’s and Pizza Hut.
Philip Gadsden, Managing Partner at Orchard Street, said: “This financing from pbb Deutsche Pfandbriefbank fits precisely with our strategy for the property and for the Orchard Street UK Prime Property Partnership. Pbb’s experience in the sector and flexible approach has enabled us to arrange a debt structure that complements our business plan, rather than dictate it and we are delighted to have secured their backing.”
Source: FTI Consulting