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Partners Group and pbb lend €125m for Alpha German assets

Private equity firm Partners Group has added a €34m mezzanine loan to pbb Deutsche Pfandbriefbank’s €91m senior facility to refinance Alpha Real Capital’s German portfolio. The five-year loan on the Alpha German Property Income Trust refinances an existing facility. The senior component of the new facility is floating and the mezzanine is fixed. The interest rates were undisclosed.

Alpha Real Capital has topped up a €91m senior facility from pbb Deutsche Pfandbriefbank with €34m of mezzanine from private equity firm Partners Group to refinance a German portfolio.

The five-year loan on the Alpha German Property Income Trust refinances an existing facility. The senior component of the new facility is floating and the mezzanine is fixed.

Paolo Bortolotti, vice president at the Swiss-based Partners Group, said the transaction was a good opportunity “to work together with another leading European real estate lender to provide financing to a portfolio of properties with strong cash flows operated by an experienced sponsor.”

He said that Partners Group’s mezzanine solution provided the flexibility “to meet complex requirements and was structured at attractive terms for our clients.”

Gerhard Meitinger
Gerhard Meitinger

Gerhard Meitinger, head of real estate finance Germany for pbb Deutsche Pfandbriefbank, said the structuring was an  example of pbb’s ability to arrange “complex financing alongside experienced borrowers and financing counterparties, providing senior leveraged participation in combination with higher leveraged mezzanine structures.”

pbb Deutsche Pfandbriefbank has already led this month on a total of €810m of loans to German developer Aurelis and Israeli-owned ADO Properties.

Alpha Real Capital, headquartered in London, has about £1bn of assets under management across a number of real estate and debt funds. The fund manager’s Alpha German Property Income Trust portfolio consists of 29 retail and logistics properties across Germany.

Alpha said the refinancing would be used to re-gear short term leases, reduce vacancy levels and carry out property-specific value-add initiatives.

 

 

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