Pbb Deutsche Pfandbriefbank has teamed up again with German insurer ERGO to provide a long-term loan for a development project in Munich.
Pbb has structured a 20-year investment and development loan totalling €160 million for the German city’s Neue Balan project on behalf of client Allgemeine Sudboden Grundbesitz.
The lenders will provide finance in equal proportions with pbb the lead manager and facility and security agent.
The eight-year-old Munich commercial project, on the former Infineon site, so far totals 100,000 square metres and there are two office buildings which have just started construction.
It is the second large development and investment loan in the city that pbb and ERGO have financed together.
In 2014 they backed Jost Hurler Beteiligungs & Verwaltungs’ Schwabinger Tor scheme, financing the latest phase of development as well as existing properties, with a €388 million, 20-year facility.
Gerhard Meitinger, pbb’s head of real estate finance in Germany, said: “Neue Balan is a special city quarter development which will create an unusual office campus for Munich in an attractive location. This transaction has also deepened cooperation between ERGO insurance group and pbb.”
Ergo is part of Munich Re and operates in 30 countries. It set up a commercial real estate financing team in 2013. Head of real estate finance, Eckehard Schulz said the financing combined “the skills and expertise of both partners.”