Citi has provided close to €250m (£179m) in finance for Oaktree Capital Management’s purchase of Commerzbank’s €752m German non-performing loan portfolio, codenamed Sun.
The portfolio of loans held against 177 underlying assets was bought by the private equity firm in July.
The facility therefore reflects a loan-to-value of close to 65% on the estimated purchase price of €415m.
Citi’s loan has been extended over an five-year term at a margin of above 300bps.
The pricing reflects the quality of the underlying assets and the low level of defaults on the loans.
The majority of the assets the loans are held against are offices, as well as some residential, industrial and retail assets.
They include two shopping centres owned by Charter Hall Retail in Jena and Chemnitz and the German Federal Post Office in Darmstadt owned by DCM German Capital Management.
Of the €51.2m total rent generated by the portfolio, 10 assets provide €26.2m of the income.
Commerzbank still has an estimated €900m of NPLs left on its books.
