Germany’s HSH Nordbank has written a €79 million loan for the purchase and refurbishment of two office properties in Frankfurt.
The debt package, with a term of almost five years, has been provided to the Real Estate I fund of the European private equity firm EQT.
The loan will finance the ‘Atricom’ office building, located in the Niederrad district and built in 1990. It comprises around 45,600 square meters of rental space. The multi-tenant office property ‘Le Byro’ will be also financed. The building, built in 2003, has around 23,700 square meters of rental space and is in the neighbouring Neu-Isenburg district.
Peter Axmann, head of real estate at HSH Nordbank, said: “Frankfurt is among the top seven office locations in Germany. The possible impact of Brexit is not least among the factors that will make this metropolitan region appealing to many companies and investors going forward.”
In July, HSH Nordbank provided a €93 million loan to Cording Real Estate Group to finance its purchase of a property portfolio located across western Germany.
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.