Deutsche Pfandbriefbank (pbb) has provided a £28 million loan to finance Tristan Capital Partners’ latest investment in the UK regions.
The facility finances the £45 million purchase of two retail parks, located in Luton and Sunderland, by Tristan’s European Property Investors Special Opportunities 3 (EPISO 3) fund from Hercules Unit Trust.
The 62 percent loan-to-value, five-year loan was written at a margin of between 160 and 180 basis points over three-month Libor, a source said. It is understood that pbb beat competition from UK clearing banks to provide the loan.
The 83,350 sq ft Hatters Way retail park in Luton and the 121,600 sq ft Hylton Riverside in Sunderland were purchased by EPISO 3 in September alongside Pradera, which will asset manage the properties.
Tristan said at the time of the purchase that the deal builds on its partnership with Pradera to acquire and manage retail assets in areas identified for their return potential. The parks have 10% of vacant space, plus potential to re-gear leases and relocate existing tenants as well as an element of development.