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Deutsche Pfandbriefbank refinances UK regional shopping centre for McKillen

Irish investors Patrick McKillen and Padraig Drayne have refinanced a large regional shopping centre after regaining control of the asset by teaming up with Colony Capital.earlier this year to buy IBRC’s €800m ‘Pebble’ portfolio of non-performing loans. Deutsche Pfandbriefbank has lent £100m against the 800,000 sq ft Frenchgate Shopping Centre in Doncaster owned by the […]

FrenchgateIrish investors Patrick McKillen and Padraig Drayne have refinanced a large regional shopping centre after regaining control of the asset by teaming up with Colony Capital.earlier this year to buy IBRC’s €800m ‘Pebble’ portfolio of non-performing loans.

Deutsche Pfandbriefbank has lent £100m against the 800,000 sq ft Frenchgate Shopping Centre in Doncaster owned by the trio. The five-year loan reflects an LTV of between 60% and 65%.

The asset was secured against one of a number of loans in Project Pebble which were originally made to McKillen and Drayne. Belfast Office Properties, which is co-owned by McKillen and Drayne, bought Frenchgate in 2006 for £245m.

The refinancing is an example of a wave of secondary deals that are expected to materialise from non-performing loan portfolio sales that have taken place as the European debt and investment markets improve.

Frenchgate is around 95% occupied and was extended and refurbished in 2006.

Charles Balch,head of real estate finance International, UK & CEE at Deutsche Pfandbriefbank said: “The transaction represents further expansion of the bank’s portfolio secured on regional assets. It evidences pbb’s appetite to provide financing for assets outside London.”

Eastdil Secured advised the borrower.

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