Deutsche Hypo has provided finance to German property investor Patrizia Immobilien to support its acquisition earlier this year of a residential portfolio in the Netherlands.
The bank has provided a €68.6 million loan for a term of ten years. The financing reflects a conservative loan-to-value ratio of around 46 percent.
Patrizia bought the so-called ‘Granite’ portfolio in March on behalf of an institutional investor. The portfolio was bought for around €150 million from funds managed by Holland Immo Group.
The Granite portfolio comprises 29 residential properties with a total of 1,275 units across 23 locations in the Netherlands including Amsterdam, Zwolle and Dordrecht.
Deutsche Hypo has previously backed Patrizia’s Dutch business. In 2015, it provided a €331 million underwriting of Patrizia’s €578 million acquisition of the Project Wilhelmina portfolio of 137 apartment blocks in the Netherlands. Deutsche Hypo retained a third of the deal, which was also syndicated to ING Real Estate Finance and Deutsche Pfandbriefbank.
In January, Deutsche Hypo and ING provided a €160 million loan to Patrizia to finance a portfolio of 145 properties including 107 retail, 35 residential and three office properties mainly based in the Randstad area of the Netherlands.
“We are delighted to be able to expand our strong partnership with Patrizia with this financing initiative and to extend our well-positioned real estate portfolio in the Netherlands,” said Andreas Pohl, chairman of the board of managing directors at Deutsche Hypo.
“The residential market in the Netherlands is currently in excellent shape and its trend going forward looks positive. We will continue to profit from this thanks to our track record and our strong position in our core market of the Netherlands,” Pohl added.