pbb Deutsche Pfandbriefbank has provided a €40m facility to French developer Sadev 94 for its Ivry Confluences regeneration scheme near Paris.
The long-term development facility will be used to finance infrastructure works such as highway construction and the building of public spaces at the 145-hectare site.
The two local authorities involved in the project, the Département du Val-de-Marne and the City of Ivry-sur-Seine, which are both shareholders in Sadev 94, have guaranteed 80% of the loan.
“Sadev 94 is a leading example of an experienced urban developer able to carry out key projects at the inter-municipality scale around Paris. Urban development companies such as Sadev 94 are becoming a key part of pbb’s client base,” said Jean Christophe, head of public investment finance and general manager of the French branch of pbb.
The 1.3m square metre scheme, located in Ivry-sur-Seine in the southeastern outskirts of Paris, will see half the site developed into offices and light industrial space. About 40% will be for housing and 10% for public amenities such as schools and sporting and cultural facilities including a cinema.
pbb’s development funding follows its recent provision of a €100m loan package to Paris regeneration firm SEMAPA for its Paris Rive-Gauche development, also on the bank of the Seine.
That five-year facility is comprised of a number of development loans and will fund the next stage in the project beginning with infrastructure works at one of the largest schemes in the French capital since the 19th century.