A €135m finance package has been agreed for the construction of a new shopping centre in Metz, France in the latest sign of a recovery in the development financing market.
Deutsch Pfandbriefbank has underwritten a three and a half year, €105m loan for Apsys for the 37,000 sq m development at its Muse complex. The bank subsequently sold a €30m vertical senior tranche to reinsurer Scor.
Deutsche Pfandbriefbank has been actively looking to expand its development exposure in many parts of Europe including the UK and its willingness to fund schemes in regional areas of France, outside of Paris, is another marker of the extent of the recovery in the financing market.
Pimco is understood to have provided an additional mezzanine tranche of just under €30m, which was structured by Quarters Capital. It is thought to be PIMCO’s first mezzanine lending deal in France.
Norbert Müller, head of real estate finance for continental Europe west at pbbDeutsche Pfandbriefbank, said: “This transaction further cements a strong relationship with Apsys. It is one of the more complex real estate transactions in the last few years and extends our commitments to selected development finance and exposure in French regional cities.”
The centre is 65% pre-let to tenants including Primark and is due to complete in autumn 2017. It is located close to the borders of Germany, Belgium and France and is part of a wider development that will include 10,000 sq m of offices and 400 new homes.