Deutsche Pfandbriefbank has written a cheque of more than €100m to finance the development of a mixed-use project in Hamburg.
The financing is being supplied to a special purpose vehicle owned by Centrum-Gruppe for its 22 – 26 Spitalerstraße scheme. The 10,500 sq m project will include a seven-storey retail and office building.
The bank has been one of the more positive in Europe in its willingness to consider development financing, with many traditional lenders still wary of such deals. This is the second project in the city it has backed in as many months.
The majority of the retail space at the Spitalerstraße development has been pre-let to high-end retailers, in part de-risking the scheme. The street is one of the most popular shopping destinations in Germany.
Gerhard Meitinger, head of real estate finance Germany at Deutsche Pfandbriefbank, said: “With this project – which involves the demolition of an existing building and construction of an attractive new building – Deutsche Pfandbriefbank’s structured finance approach and the replacement of the existing complex finance structure were convincing.
“Hamburg is a particularly interesting market for pbb and a market in which we want to further strengthen our activities in 2015.”
Last week Deutsche Pfandbriefbank announced a deal to lend Quantum Immobilien €102m to develop three buildings at the Hafencity regeneration area on the city’s harbour.