Deutsche Asset & Wealth Management (Deutsche AWM) has provided a €36m facility to UBS Global Asset Management for its €70m purchase of Zielo Shopping Centre in Madrid.
The medium-term loan reflects a loan-to-value of just over 50% and is Deutsche AWM’s first debt investment outside Germany following the second close of its real estate senior debt fund.
Deutsche AWM increased the fund to €750m after raising €250m in extra capital from investors earlier this month. It allocated €400m to acquire German debt assets and €350m to opportunities in France, Italy, Spain and the United Kingdom.
“The high quality of this property demonstrates how competitive we are amongst our target market for the right borrowers against the right assets,” said Andrea Vanni, head of the real estate debt, Europe, for Deutsche AWM.
The senior debt fund targets debt with loan-to-value ratios up to 60% secured against office, retail, residential and logistics assets. Loan maturities range from three to ten years. The fund is expected to be fully invested by the end of the year.
UBS bought Zielo shopping centre off Hines European Value Added Fund, which is managed by the developer Hines, in early June.