Deutsche Pfandbriefbank has funded the purchase of a shopping centre in Berlin for Tristan Capital with a €50m loan.
The five-year facility, which reflects a loan-to-value of 76%, has been used to buy Neukölln Arcaden, a 37,900 sq m mall. Margins in Germany have tightened over the past year to below 100bps for prime assets but given that the centre is in need of asset management it is thought the spread is somewhat wider than that.
The bank has a strong relationship with the private equity fund manager and this arrangement follows on from a string of previous deals. Last year it supplied a €33m loan for the purchase of an office in Prague; the year prior a €120m loan for Tristan’s acquisition of five Polish shopping centres; and in 2012 €41.5m of debt for a German logistics portfolio.
Charles Balch, head of real estate finance international, UK & central and Eastern Europe at Deutsche Pfandbriefbank, said: “Deutsche Pfandbriefbank is pleased to be able to support our client Tristan Capital Partners in this acquisition in Germany, one of our key target markets. The transaction adds to a number of deals Tristan and pbb have done together in recent years.”
Ali Otmar, managing director of investments at Tristan Capital, said: “This is the fourth property acquired in Berlin by funds managed by Tristan Capital in the last 18 months, reflecting how much we like the dynamics of the market in the German capital. Neukölln is undergoing a wave of regeneration, which raises the potential for asset management initiatives to enhance the value of this asset.”
Neukölln Arcaden was bought by Tristan’s €950m Curzon Capital Partners III fund from Axa’s Realty Solutions fund for €65.6m. It comprises 46 shops, a nine-screen cinema, a public library and 650 parking spaces. It opened in 2000.