pbb Deutsche Pfandbriefbank will provide financing – secured by land charges – in a total amount of €63 mln to affiliates of Cerberus Capital Management L.P.
The funds will be used to refinance a portfolio of three retail properties located in Bielefeld, Bonn and Konstanz, and to substantially refurbish the properties. The relevant loan agreements were signed in September 2015.
Cerberus acquired the retail portfolio from US financial services provider Wells Fargo in August 2013. The three retail properties are in slightly above-average to very good locations. Cerberus plans extensive refurbishment works for the properties, and to raise the occupancy rate; some activity has already started in this respect.
German retail property is a distinct area of specialism for Cerberus, with a particular focus on investing in distressed assets. When an affiliate of Cerberus acquired a portfolio of 45 German retail properties in August 2010 for a purchase price of more than €700 mln, it was the largest real estate transaction in Germany that year, and one of the country’s most significant property transactions since 2007.
For this purpose, Cerberus has retained ACREST, an experienced asset manager which specialises in retail properties. The firm has known the properties for several years.
Gerhard Meitinger, head of real estate finance Germany pbb Deutsche Pfandbriefbank, said: "Cerberus and pbb look back on a successful and longstanding business relationship. We are convinced that our partners will succeed in significantly enhancing the quality of the properties through the major refurbishment measures already in hand. This is one of the reasons why we are pleased to support this transaction as a financing partner."
Source: pbb
