HSH Nordbank has provided a €93 million loan to Cording Real Estate Group to finance its purchase of a property portfolio located across western Germany.
Cording has bought the 103,000-square-metre portfolio on behalf of a joint venture between Danish fund manager Sparinvest Property Investors and Turkish family office Esas Properties. The purchase price totals around €143 million, implying a 65 percent loan-to-value ratio for the financing.
The 10 properties are located across eight cities including Hamburg and Cologne. Around 90 percent of the total area is used as office space and the occupancy rate is 97 percent. Tenants include listed companies such as Deutsche Telekom, BASF and Nokia.
The deal represents the first time HSH Nordbank has provided property finance to Cording. Based in London, Cording provides investment management, asset management and property management services across Germany, the UK and the Benelux.
HSH Nordbank wrote €1.1 billion of new real estate financing business during Q1 2017, as it continued to bolster its core business ahead of a planned privatisation. The real estate segment of the bank generated earnings of €34 million, up from €27 million in the same quarter during 2017, and making a significant contribution to the bank’s earnings. Overall, HSH’s core bank made a €262 million pre-tax profit, compared with a €36 million loss in Q1 2016.
If you do not receive this within five minutes, please try to sign in again. If the problem persists, please email: