pbb Deutsche Pfandbriefbank has provided IFM Immobilien with a €58m five-year development loan to start building a new city quarter in Wiesbaden, near Frankfurt.
The first phase of the Kureck development will begin with the construction of a new office building, a city villa with 11 apartments and more than 220 underground car parking spaces.
The Ministry for Integration and Social Affairs in Hessen will occupy the office scheme. Further phases will see more than 40,000 sq m of floor space built on the Kureck site.
The loan is pbb’s ninth in the past month with the total provided nearing €1.5bn. The German bank reported an 8% rise in lending during Q1 2015; its parent, state-owned Hypo Real Estate, put pbb up for sale earlier this year, appointing Citigroup and Deutsche Bank as advisors.
Gerhard Meitinger, head of real estate finance in Germany at pbb, said: “The development of Kureck in Wiesbaden is of particular importance with regard to urban development. A new quarter will be created in a prominent location, offering an attractive mix of residential property, offices, retail and restaurants.”
Frankfurt-based IFM invests and develops mainly office and retail schemes in Germany. It was bought two weeks ago by private Norwegian real estate investment company THF AS.