Pricoa Mortgage Capital provides €36 million in financing for Hines’ purchase of German logistics property (DE)

Pricoa Mortgage Capital provided a €36 million commercial mortgage to support Hines Global REIT’s acquisition of a logistics property in Bavaria, Germany. Pricoa Mortgage Capital is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE: PRU), which is headquartered in the US, and is one of the largest commercial mortgage lenders in the United States.
The fixed-rate loan is secured by a 56,500 m² logistics property in Forchheim near Nuremburg, wholly let to the 3rd party logistics provider Simon Hegele. Currently, 20,000 m² of space is under construction at the property and will be handed over to the tenant on completion. The loan is split into two tranches, the second of which will be drawn on completion of the warehouse under construction.
“Logistics is a preferred asset type of ours and the strong demand drivers for this property’s location, combined with the track record of Hines’ sponsorship, drove our interest here,” said David Gingell, a director of originations for Pricoa Mortgage Capital.
Drew Abernethy, head of European originations for Pricoa Mortgage Capital added, “This transaction marks Pricoa Mortgage Capital’s third European financing with Hines Global REIT, demonstrating our increasing ability to respond to client requirements across multiple markets.” In 2014, Pricoa Mortgage Capital has up to €1 billion (£850 million) available for long-term, fixed-rate senior debt transactions in Europe, with the ability to do significantly more than this. All European debt will be denominated in local currency and secured by income-producing real estate. Pricoa Mortgage Capital is primarily interested in office, industrial, multifamily and retail properties in and around large population centers in countries such as the UK, Netherlands and other major countries at the request of clients.

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