TIAA Henderson Real Estate (TH Real Estate) has secured a new €54.7 million debt financing on behalf of its European Outlet Mall Fund.
The new five year facility replaces the previous €39.2 mln financing, which was due to mature in December 2014. The debt has been secured against phases one and two of Designer Outlet Parndorf.
The loan, provided by pbb Deutsche Pfandbriefbank, gives the Fund the firepower to undertake asset management at the property and work towards the development of a new phase at the scheme, which is expected to open in 2016. The deal is competitively priced, reflecting a conservative loan to value on this prime Austrian retail asset.
The refinancing comes shortly after the successful ten year “extension” of the approx. €1.5 billion flagship European Outlet Mall Fund, which owns eight outlet mall assets across Europe, in addition to its indirect holding in three UK outlet mall assets.
Designer Outlet Parndorf is located 30 minutes from Vienna center, and 25 minutes from Bratislava. The center hosts designer stores including Armani, Gucci, Polo Ralph Lauren and Michael Kors.
Colin Throssell, Head of Treasury, added: “Just as with our recent Berlin refinancing, also with PBB, this is great result for the Fund and its investors, representing another milestone in what is a very eventful year. We have now successfully navigated the Fund extension and completed two re-financings during 2014 alone.”
Charles Balch, Head of Real Estate Finance International, UK & CEE at pbb Deutsche Pfandbriefbank, commented: “We are delighted to have provided TH Real Estate and the Fund with these two refinance facilities for the Parndorf and Berlin designer outlet centers. These two transactions are a prime example of PBB's ability to provide local financing for its international clients across its pan-European network.”
Source: TIAA Henderson Real Estate