PGIM Real Estate continues to grow its European senior loan portfolio, providing financing for two portfolios in the Netherlands, one in logistics and the other in the residential private rented sector (PRS). The company has provided loans of €56m for the acquisition and refinance of seven freehold logistics assets totalling 115,000m² across the Netherlands as well as a loan of €105m, to refinance the development of a PRS portfolio, in Amsterdam and Eindhoven.
The seven freehold logistics assets are located near Amsterdam and along the Rotterdam Ruhr corridor in the south of the Netherlands. The loan has an initial term of three years. The portfolio is let to six tenants, including large providers of transportation and logistics services and grocery delivery.
The two-asset residential portfolio, owned by Foolen & Reijs Vastgoedgroep, comprises a 13-story mixed-use property in Amsterdam composed of 195 residential units and a property in Eindhoven totaling 437 residential units within an attractive period property renovation. The seven-year fixed-rate senior loan is a co-investment between PGIM Real Estate and ABN Amro, who also arranged the loan. The demand for housing in Amsterdam and Eindhoven remains strong, driven primarily by the longstanding undersupply of housing that exists in these cities.
Andrew Macland, head of European Debt, commented: “Senior debt lending in the UK and Continental Europe continues to present attractive investment opportunities for non-bank lenders, such as PGIM Real Estate, with long-term trends and dynamics on display across a number of geographies and sectors. These deals are examples of our ability to identify interesting opportunities and continue to support sponsors even throughout the more challenging periods.”
David Gingell, executive director for Continental Debt Origination based in Frankfurt, commented: “These loans represent our commitment to write business in markets with positive long term fundamentals, even when faced with short term uncertainty. The Netherlands is a resilient market and presents attractive opportunities as we continue to build exposure to logistics and PRS, encouraged by the increasing shift to online retail and continued to undersupply of housing.”
