HVB to refinance Uni-Invest with € 1.56 bln.

HVB Real Estate Investment Banking has arranged a structured loan of € 1.56 bln. for Uni-Invest. With the loan Uni-Invest can refinance its mortgage debts and the temporary arrangement related to the acquisition of shares by Lehman Brothers and the Merwede Groep.

Because of the bid by Lehman Brothers and the Merwede Groep of € 1.8 mln. in July 2002, Uni-Invest was taken off the index. The refinancing by HVB and FGH was done through a ‘flex pricing mechanism’, a custom made construction for Uni-Invest. FGH Bank acted as co-arranger for a part of the loan.

According to HVB it was already certain at the time of the acquisition that the financing would be arranged in this way. At the end of December 2002 the Uni-Invest portfolio included over 440 shops, offices and industrial space with a surface of over 1.7 mln. m².

HVB believes that this financing transaction is one of the largest ever made in the European real estate sector. Because of this the buyers of Uni-Invest only had to negotiate with one bank.

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