FINANCE: Citigroup has signed a five-year deal with Cerberus to provide €650m (£465m) of new finance for its Metro Ag retail portfolio in Germany.
A portfolio of 45 cash and carry stores, leased to the Metro Ag chain, was originally purchased for €600m in 2012 with a debt of around €450m.
Asset management has increased the portfolio’s value to around €800m and allowed for an increase in the size of debt it carries. The refinancing was underwritten by Citi, with members of the original loan syndicate believed to have participated in the new facility.
The facility, which is across the capital structure and has a €100m-plus mezzanine element, is expected to be syndicated.
The deal is the second Citi has signed with Cerberus this year. In January it provided £450m for the purchase of Nationwide’s Project Carlisle NPL portfolio.
