Pbb Deutsche Pfandbriefbank has provided a €38 million loan to finance the acquisition of a retail portfolio in Germany.
The loan funds the purchase, by Frankfurt-based property company WCM Beteiligungs- und Grundbesitz AG of four assets for €66.5 million, implying a loan-to-value ratio of around 57 percent. The financing deal was closed in November.
WCM bought the 52,500 square metre portfolio in September. The portfolio contains four shopping centres located in the German federal states of Saxony-Anhalt, Saxony and Brandenburg. The properties are 96 percent occupied.
The properties produce €4.4 million of rent per year and have a weighted average lease term of 12.3 years.
“WCM distinguishes itself through an experienced management team and a high level of real estate know-how. The financed shopping centres benefit from a strong anchor tenant with a long-term commitment; the stores are important ports of call in their respective regions. Pbb commands strong expertise in the financing of retail properties. We were thus happy to support this exposure,” commented Gerhard Meitinger, head of real estate finance Germany at pbb Deutsche Pfandbriefbank.
WCM AG focusses on high-quality office and retail properties in the major office locations in Germany and has a gross asset value of more than €700 million.