Deutsche Pfandbriefbank and Pramerica have funded Threadneedle’s purchase of a £111m industrial portfolio from SEGRO.
The German lender is understood to have provided the fund manager with a £60m, five-year senior facility for the purchase of the 10-strong portfolio which was confirmed with SEGRO’s interim results (see box).
Fund manager Pramerica also provided up to £20m of stretched senior debt from its £492m European mezzanine fund, Pramerica Real Estate 1. The financing closed on Wednesday.
The partners, who have not worked together before, finalised the deal in recent weeks after Royal Bank of Scotland ended talks about providing a debt package.
It is the third deal for the German lender this week as it continues to move towards its 2012 real estate lending target across Europe, which it said would be broadly similar to last year’s €6.3bn (£4.9bn).
This includes around €1bn, or £850m, which was lent in the UK as one of its three core markets alongside Germany and France.
On Monday, pbb announced it had teamed up with fellow German lender DekaBank on a €83m senior loan provided to Tristan Capital Partners for a €138m, 12-strong German warehouse portfolio purchase from Prologis in April.
The banks each funded their €41.5m share of the senior loan on 18 July, reflecting a portfolio loan-to-value of 60.1%.
pbb also announced a second loan to Eli Shahmoon’s and David Gabbay’s private property company, O&H Holdings, for a £25m refinancing.
The UK team, led by Charles Balch, who replaced Harin Thaker in March, is focused on assets in London and the larger regional centres. It will lend from £25m through to £100m, but ideally completes deals in the £50m-£70m bracket.
pbb is still to identify a London-based senior real estate finance head for Spain, France and Scandinavia – which was previously under Thaker’s remit.
Deutsche Pfandbriefbank could not be reached for comment on the Threadneedle deal; Pramerica refused to comment.
SEGRO’s values fall as sales continue
SEGRO revealed a 6.7% decline in net asset value to 317p a share as the value of its non-core assets slid 11.6% in six months to the end of June. The industrial REIT said its core assets reduced in value by only 1% – against the IPD’s 1.7% drop. The group’s vacancy rate remained stable at 9.1% as its portfolio reduced in size from £5.1bn to £4.8bn in line with its non-core disposal programme.
