pbb Deutsche Pfandbriefbank has provided a €138m loan to CBRE Global Investment Partners (GIP) to buy a pan-European portfolio of logistics assets.
The five-year facility reflects a loan-to-value of about 40% on the €350m purchase price. CBRE GIP acquired the assets from existing clients of TH Real Estate. TH Real Estate will continue to manage the portfolio.
“European Logistics has been identified by CBRE GIP and our research team as one of the key asset classes which a diversified, income focussed investment strategy should take advantage of,” said Thorsten Kiel, TH Real Estate portfolio manager, head of Europe logistics and fund manager of the vehicle.
“Good quality buildings in well-established logistics hubs are expected to deliver strong income returns, particularly in the Western and Southern European markets, where the spread between bonds and prime logistics yields are still more than 450-550bps.”
The financing will fund the purchase of seven logistics properties comprising about 600,000 sq metres in total. The assets are located in France, which accounts for 71% of the rental income, the Netherlands, Spain and Germany.
Charles Balch, head of international, UK and Central and Eastern Europe (CEE) real estate finance at pbb, said the deal “underlines our ability to cater for large pan European transactions.”
“pbb looks forward to continuing its close relationship with both CBRE GIP and TH Real Estate who are both highly regarded players in the real estate market with a strong proven track record,” added Balch.
The majority of the portfolio is leased to large multinationals or listed companies, such as French retailer Auchan and US-based consumer goods company Procter & Gamble.
“The acquisition gives our investor clients exposure to a high quality portfolio of logistics assets in strategic locations across Europe,” said Jeremy Plummer, head of CBRE GIP. “Our goal is to complement the existing portfolio with further acquisitions of similar quality.”
The acquisition program will primarily target assets across France, Germany, Spain and Benelux. Investments into CEE will also be considered.