Deutsche Pfandbriefbank (pbb) has provided a €36 million loan to Frankfurt-based property investor WCM Beteiligungs- und Grundbesitz-AG (WCM) to finance its recent acquisition of an office building located near Frankfurt.
The circa 73 percent loan-to-value facility will finance WCM’s €49 million purchase of the Trevista office building from Commerz Real last October. The equity portion of the deal was provided from WCM’s existing funds and the loan was closed in December 2015.
Trevista is an 18,281 square metre multi-let office building located at the Helfmann-Park business park in the town of Eschborn. The building is let to tenants including recruitment agency Randstad. The building produces an annual net rental income of €3.3 million, with an average remaining lease term of more than five years.
Commerz Real had bought the property for its hausInvest fund in 2006. The sale to WCM reflected a 6.7 percent yield.
WCM has previously sourced finance from pbb. In 2014, pbb wrote various loans to the company to finance the acquisition of three office properties in Bonn, Dusseldorf and Frankfurt. Last October, pbb provided €84 million to WCM, taking the bank’s total commitment to the firm to almost €130 million. The 75 percent LTV facility was used to finance two purchases: the €90 million acquisition of the Main Triangel building in Frankfurt from Aareal Bank and the €22 million acquisition of an office block in Berlin from GE Real Estate Property GmbH.
In December 2014, pbb provided a €45.5 million loan for the purchase of three office buildings in Bonn, Dusseldorf and Frankfurt, reflecting a LTV of around 71 percent, all also sold by GE Real Estate Property GmbH.
“With this transaction, we continue to build our professional co-operation with WCM AG. We are pleased to be WCM’s banking partner, having already financed a well-diversified real estate portfolio for this client. WCM is a proven expert with a successful track record in office property management,” said Gerhard Meitinger, head of real estate finance Germany at pbb.