pbb Deutsche Pfandbriefbank and Helaba have jointly underwritten a €188 million five-year secured facility to SEGRO European Logistics Partnership (SELP), a joint venture set up by Segro PLC and Public Sector Pension Investment Board (PSP), for its acquisition of the seed assets in Poland and Czech Republic. €166 million will be used for the acquisition of the seed assets and adjacent land bank while €22 million is available to refinance future properties. The transaction closed on October 11, 2013. pbb and Helaba are acting as Joint Lead Arrangers with pbb being Facility Agent and Security Agent.
The seed portfolio consists of 10 stabilized grade-A logistics estates from SEGRO's portfolio, 9 in Poland and 1 in the Czech Republic. It also comprises 520,000 m² of adjacent development land located in Poland providing potential to build out further logistics space.
SELP is a 50:50 joint venture between SEGRO and PSP Investments, one of Canada’s largest pension investment managers and was set up to create a leading Continental European logistics platform. SELP's overall portfolio consists of 34 logistics properties, having an aggregate floor space of some 1.6 million m²; these properties offer modern distribution space in prime locations in France (36%), Poland (38%), Germany (13%), Belgium/Netherlands (9%), and the Czech Republic (4%). The portfolio is valued at around €1 billion.
Charles Balch, Head of Real Estate Finance International Clients, UK and CEE at pbb Deutsche Pfandbriefbank, commented: "pbb is very pleased to have supported SEGRO and PSP in the funding of their continental European joint venture. This financing also highlights our continued presence in the logistics sector across European markets.”
Michael Kröger, Head of International Real Estate Finance at Helaba, commented: "Helaba has further intensified its market coverage and business activities in Central Europe, focusing on professional clients such as SEGRO. We are pleased to contribute to SELP’s success.”
Justin Read, Group Finance Director at Segro PLC, added “We are delighted to have begun a relationship with pbb and Helaba and are looking forward to the opportunity of continuing to develop this in the future as we grow the SELP venture”