Pbb Deutsche Pfandbriefbank has refinanced its existing loan secured by a portfolio of Central European industrial assets following the acquisition of the properties by Valad Europe.
The German bank has provided a new €160 million loan to refinance the Central European Industrial Fund (CEIF), which was formerly a joint venture between Valad and Aviva Investors.
Valad has co-invested with one of its institutional investor partners to buy all the assets owned by CEIF. The fund, which was launched in September 2005, owned 22 multi-let industrial and logistics properties in Poland, Hungary, Romania and the Czech Republic, totaling 620,000 square metres. Following the acquisition, Valad Europe will continue as asset manager and take on the investment management of the portfolio from Aviva Investors.
In December 2012, pbb agreed a three-year extension to a €169 million senior loan backing CEIF.
“pbb Deutsche Pfandbriefbank is pleased to be able to maintain its support for the Central European Industrial Fund under this new ownership. Valad will provide an important level of continuity to the ongoing management and realisation of the fund’s business strategy,” said Charles Balch, head of real estate finance international at pbb Deutsche Pfandbriefbank.
“The acquisition and extension of CEIF is a great result and comes at a time when there is strong demand for industrial and logistics assets in Central and Eastern Europe. The portfolio comprises several good quality multi-let industrial and logistics properties, primarily located in Poland, the Czech Republic, Hungary and Romania,” added Thierry Leleu, head of funds management at Valad Europe.