FINANCE: Pricoa Mortgage Capital has provided a €36m (£28.5m) commercial mortgage for Hines Global REIT’s acquisition of a logistics property in Bavaria, Germany.
The commercial mortgage lending business of US giant Prudential Financial provided a fixed-rate loan which is secured by a 608,000 sq ft logistics property in Forchheim near Nuremburg.
The warehouse is wholly let to the third-party logistics provider Simon Hegele.
Currently, just less than half the space is under construction and will be handed over to the tenant on completion.
The loan is split into two tranches, the second of which will be drawn on completion of the warehouse under construction.
It is the lender’s third European financing with Hines Global REIT.
This included its UK debut in June last year when it provided the US investor with £48m of debt for its purchase of One Westferry Circus, E14, from TIAA-CREF.
Pricoa Mortgage Capital said it has up to €1bn (£850m) available for long-term, fixed-rate senior debt transactions in Europe this year, “with the ability to do significantly more than this”.
All European debt will be denominated in local currency and secured by income-producing real estate.
Pricoa is primarily interested in office, industrial, multifamily and retail properties in and around large population centres in countries such as the UK, Netherlands and other major countries at the request of clients.
The firm also seeks opportunities to finance transactions in collaboration with local banks, especially on the European continent.
“Logistics is a preferred asset type of ours and the strong demand drivers for this property’s location, combined with the track record of Hines’ sponsorship, drove our interest here,” said David Gingell, a director of originations for Pricoa.
Drew Abernethy, head of European originations for Pricoa Mortgage Capital, added: “This transaction marks Pricoa Mortgage Capital’s third European financing with Hines Global REIT, demonstrating our increasing ability to respond to client requirements across multiple markets.”
Bridget.O’Connell@estatesgazette.com
