Pbb Deutsche Pfandbriefbank has provided a €37 million loan to the Swiss Lakeward Group, to fund a residential portfolio in Berlin.
The debt financing is split in two parts, one with five-year maturity and the other with six-year maturity, Simon Koenig, founder and CEO of Lakeward told Real Estate Capital. The loan agreements were signed at the end of September.
The financing will be used to fund the acquisition of several buildings located in the newly developed “Mittenmang” area in the centre of Berlin. The vendor is the property developer Groth Group.
The residential buildings comprise rental apartments and an underground car park. With all shell construction now finished, the completion of the development is expected for Q2 2018.
“Berlin is an attractive and dynamic real estate market, experiencing a high demand for residential properties, low vacancy rates and limited new building activity,” said Gerhard Meitinger, head of real estate finance in Germany at pbb.
Lakeward was advised by Pantera Capital in negotiations with the banks.