pbb Deutsche Pfandbriefbank has provided a c. £48 million facility to a subsidiary of Harbert European Real Estate Fund III, LP which is advised by Harbert European Fund Advisors Limited. The facility finances the acquisition of a geographically diverse portfolio of retail warehouses located across the United Kingdom. This transaction closed in December 2013.
The transaction is secured on six retail warehouse assets located across the UK that are of institutional quality. The buildings were constructed in the period 1990-2007 and are well suited to current tenant demand. All parks are easily accessible and are leading retail destinations in their catchment areas. At funding, the portfolio had an occupancy rate of 98%.
Charles Balch, Head of Real Estate Finance International, UK & CEE at pbb Deutsche Pfandbriefbank, said: “We are delighted to be providing financing to Harbert for their purchase of this regional retail warehouse portfolio. The transaction is our first deal together and shows the Bank’s commitment to broaden its client base. Equally, the subject transaction represents further expansion of the Bank's portfolio secured on regional assets and evidences pbb’s appetite to provide financing for assets outside London”.
Scott O’Donnell, Senior Managing Director of Harbert Management Corporation (Europe) LLC, said: “It is always a pleasure to work with professionals who are both strong in their area of expertise but who also understand real estate and our strategy for driving value. Pbb has such a team, and as a result we were able to put a financing structure in place that allows us to act in a manner of long-term value creation.”