Deutsche Pfandbriefbank (pbb) and Nordea have jointly underwritten a €255 million senior financing of Partners Group’s second recent Nordic portfolio purchase from the Swedish property manager Sveafastigheter.
Partners has bought a portfolio of Swedish and Finnish property with a value of €450 million from Sveafastigheter. The portfolio comprises the bulk of the remaining assets in Sveafastigheter Fund III. Partners bought the portfolio via a secondary transaction on behalf of its clients, completing on 18 February.
The multi-currency financing by pbb and Nordea comprises investment finance and a capital expenditure facility in Swedish Krona and Euros. Both banks were joint mandated lead arrangers. Nordea is the facility and security agent for the transaction.
The portfolio includes 97 properties including retail, offices and hotels with a total lettable area of 360,000 square metres. Sveafastigheter has been mandated to continue the management of the portfolio, as was also the case when Partners Group acquired a SEK 3.2 billion (€336 million) portfolio from Sveafastigheter Fund II in August 2015.
Nordea also financed the previous portfolio purchase, as reported last September. The loan backed 32 assets in Sweden, Finland and Estonia.
“We are very pleased to have sold a second large portfolio from one of our funds to Partners Group, and to have achieved an excellent exit for investors in Sveafastigheter Fund III. These two portfolio sales verify the interest for the Nordic property markets among international investors,” said Johan Tengelin, CEO of Sveafastigheter.
“Following our earlier portfolio acquisition from Sveafastigheter, we have taken the opportunity to purchase another portfolio of cashflow-yielding Nordic assets on behalf of our clients. We continue to believe Nordic markets are well-positioned to perform strongly and also see potential for further value creation in the assets we have bought. As before, we secured an attractive price for our clients and also secured debt financing for the portfolio, positioning it well for the next phase of growth,” added Fabian Neuenschwander, senior vice president with Partners Group.
Sveafastigheter Fund III was launched in 2010 and closed for investments in 2011, with EUR 317 million of equity commitments. Four investment portfolios out of the original twelve have been divested over the last two years.