Deutsche Pfandbriefbank has provided debt financing for Hana Financial Investment’s £175m purchase of Gallagher Retail Park in the West Midlands.
The South Korean investor has borrowed £107m from the German bank meaning the loan-to-value of the deal reflects 61.1%.
Hana Financial Investment acquired the park via a real estate fund managed by Korea Asset Investment Management from KKR. Quadrant Estates, which managed the park for KKR, will continue to do so for Hana. Deutsche Pfandbriefbank was also the finance provider to KKR.
Located immediately adjacent to Junction 9 of the M6 motorway to the north west of Birmingham the park totals around 230,000 sq ft of ground floor retail and restaurant floor space plus 128,000 sq ft of mezzanine floor space across three terraces of retail units
Christopher Daniel, founding partner of Quadrant Estates, said “pbb were highly supportive of our original purchase and repositioning of the park with KKR and it has been great to continue our relationship with them and our new co-investor.”
Charles Balch, head of real estate finance international, UK and CEE at pbb Deutsche Pfandbriefbank, said: “We are very pleased to have won Hana Financial Investment as a new international client.”
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