ING Real Estate Finance and BNP Paribas have teamed up to provide a €160 million loan secured against a shopping centre on the outskirts of Milan.
The five-year loan finances the 32,400 square metre Galleria Verde, which forms part of the Fiordaliso retail complex located to the south of Milan. The loan has been provided to Galleria Verde Srl, a 50-50 joint venture between Dutch real estate investor Eurocommercial Properties NV and Italian retailer Finiper Group.
The loan has been written at a circa 62.5 percent loan-to-value, based on Galleria Verde’s market value of €256 million.
Galleria Verde contains 130 retail units and is part of the Fiordaliso scheme, which is anchored by a hypermarket and an adjacent retail park. Eurocommercial Property bought a 50 percent stake in the Fiordaliso scheme last year for €135 million, reflecting a net initial yield of 5.8 percent. The hypermarket is owned and occupied by Finiper.
Amsterdam-based Eurocommercial Properties owns shopping centres in France, Italy and Sweden, while Finiper is an Italian retailer with a portfolio of hypermarkets.
ING and BNP acted as joint mandated lead arrangers for the loan, while ING also acted as facility agent.