Deutsche Pfandbriefbank has provided La Française two loans totalling €79m to fund its acquisitions of two Paris office buildings.
The deals come at a time where there is pessimism surrounding the French market due to poor economic performance and relative political instability, whilst the bank is pushing to expand its book in preparation for a sale or IPO before the end of the year.
A €35m loan has been used to buy the Jazz office building in the Trapèze district of Boulogne Billancourt. The 7,500 sq m building is let to Michelin.
The second €44m loan was provided for the purchase of the Panorama Seine and Dockside office buildings which together form the headquarters of facilities management company, Sodexo. The buildings are located in Issy-les-Moulineaux and total approximately 10,000 sq m.
Norbert Müller, head of real estate finance for continental Europe west at the bank said: “We are proud to have completed our first two financings with La Française REM which has a strong track record in the management of collective real estate investment funds. These transactions reflect pbb’s ambition to increase its French loan book by partnering with French real estate experts”.