Pbb Deutsche Pfandbriefbank and Unicredit Bank Austria have provided a €120m five-year facility to Lone Star for a Central and Eastern Europe mixed-use portfolio.
The two banks are lending €60m each to the US private equity firm for its purchase of the assets from Aviva Investors.
About two-thirds of the portfolio are office blocks in Warsaw and Prague with the balance split evenly between retail and industrial buildings in Poland, the Czech Republic, Slovakia and Hungary.
Lone Star’s Real Estate Fund III bought the €195m portfolio from Aviva’s Central European Property Fund last August. Real Estate Fund III targets global real estate debt and equity and contains 878 assets valued at $18bn.
The €120m Lone Star facility is the second large joint loan made by Bank Austria and pbb recently. The banks underwrote a €300m refinancing loan for the Vienna-based Immofinanz Group last week.
“CEE is our key market,” said Lukasz Motyl, head of real estate CEE at Bank Austria. “We are the largest bank in the region in terms of total assets and we serve our clients in all the 13 geographies in which we have a local bank.”
Pbb’s €60m loan is its tenth significant deal in the past month with the total provided by the German bank nearing €1.5bn for May.
Charles Balch, head of international clients UK & CEE at pbb Deutsche Pfandbriefbank, said: “This is another fine example of a pan-CEE portfolio financing, which only a limited number of financiers are able to arrange.”
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