MünchenerHyp writes €76.5m loan in drive for large-scale lending

The German bank provides acquisition financing for a residential-led portfolio in Hamburg.

Münchener Hypothekenbank has provided a €76.5 million acquisition loan for a portfolio of residential and commercial assets in Hamburg, Germany.

The finance was provided to the fund manager Deutsche Investment, which acquired the portfolio for €136 million through its open-ended real estate vehicle Deutsche Investment – Wohnen IV. The purchase price implies a loan-to-value ratio of 56 percent.

“This loan is very much in line with MünchenerHyp’s strategic aim of offering large-scale loans for portfolios more intensively than in the past,” said Jan Peter Annecke, the bank’s head of commercial real estate finance.

“The bank is focusing in this regard on Germany and Western Europe, including the UK. In certain cases, we also offer lending for multinational portfolios,” Annecke added.

Besides the portfolio, bought from the Danish seller De Københavnske Ejendomsselskaber, the loan will finance two further properties acquired by the fund last year.

The core portfolio comprises 13 residential and commercial properties, including 325 apartments, 51 commercial units and more than 200 underground and outdoor parking spaces. The properties are close to fully let.

“Opportunities to acquire such a large and centrally located portfolio in Hamburg are currently very rare,” said Florian Mundt, managing shareholder of Deutsche Investment.

“We began intensive due diligence on this transaction at an early stage and identified a substantial potential with the properties for infill,” Mundt added.

The Deutsche Investment – Wohnen IV fund, with current assets under management of €160 million, has a target volume of €250 million. The fund invests primarily in well-located residential properties in Hamburg and Berlin.