Pbb finances French retail park portfolio with €72.5m loan

German lender pbb Deutsche Pfandbriefbank has written a €72.5 million loan to finance the recent acquisition of nine French retail parks by a trio of joint venture partners.

German lender pbb Deutsche Pfandbriefbank has written a €72.5 million loan to finance the recent acquisition of nine French retail parks by a trio of joint venture partners.

The loan has been provided to SCI FRF2 Apollo, a joint venture between Credit Agricole Assurances’ Predica unit, Belgian real estate group AG Real Estate and French real estate investor Frey.

In March, Frey announced the purchase of the nine retail parks for €143.5 million, implying that pbb’s financing reflects a loan-to-value ratio of around 50 percent.

pbb_corpdesign_1_1The portfolio includes a retail park containing 35 outlets at Douai-Dechy near the Belgian border, as well as two properties in the Paris region at Maurepas and Villiers-sur-Marne. The portfolio also comprises properties in the regions including Bordeaux, Rennes, Toulon and Arras.

In total, the nine properties comprise around 76,800 square metres of lettable space, fully let to 70 tenants. Frey is acting as the asset manager of the properties.

Pbb said that the financing deal was agreed in February and that it acted as the sole lender in the deal.

“We are proud to back this JV and to develop new business with these key real estate players. The locations of all assets in the portfolio are good, benefiting from excellent road connections and public transport links. All the properties are located close to well-known anchor tenants in their respective retail zones. The French retail market is a sound prospect and we look forward to working with our partners on similar transactions in the future,” said Norbert Müller, head of real estate finance continental Europe west at pbb Deutsche Pfandbriefbank.

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