Pbb Deutsche Pfandbriefbank and HSBC have jointly provided a €117 million development and investment loan to Valad Europe’s Valad Polish Retail Fund, secured by the Janki shopping centre in Warsaw.
The loan will be partially used by Valad to fund a 20,000 square metre extension to the shopping centre, with the remainder to refinance existing debt facilities.
In February 2014, Valad completed a €310 million refinancing of its Valad Polish Retail Fund through three loans. The Janki shopping centre, which at the time was due to undergo a €60 million redevelopment, was refinanced with a €75 million loan facility provided by Berlin Hyp.
Pbb is acting as arranger, facilitator and security agent on the new loan, which has been jointly underwritten with HSBC. The transaction closed in April, the banks said.
Janki Shopping Centre has a gross lettable area of more than 46,000 square metres. The centre was built in 1999 and is currently fully let to retailers including an Auchan hypermarket, H&M, C&A, Nike, and Adidas. The extension to the scheme will provide 83 extra shop units.
“Centrum Janki occupies a prime location in an established retail destination, south of Warsaw. The decision to invest in Centrum Janki was based on its dominance of the local market as well as the improved accessibility provided by new infrastructure,” said Karol Pilniewicz, Valad Europe’s head of CEE.
“Valad’s planned investment demonstrates continued interest of international corporates in tapping into the opportunity resulting from strengthening purchasing power of local consumers as the country’s economy continues rapid development,” added Martin Reichel, head of wholesale, HSBC Bank Poland.