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PGIM REF makes Dutch residential debut with €78.5m loan

The seven-year debt facility, provided by the US lender alongside ABN Amro to Orange Capital Partners, has a LTV ratio of around 58%.

PGIM Real Estate Finance has made its first foray into the Dutch residential market with a €78.5 million loan provided with ABN Amro to property investor Orange Capital Partners (OCP).

The seven-year debt facility refinances the debt of Dutch residential portfolios acquired by the Amsterdam-based investor.

The portfolio, with approximately 700 units and a total net market value of more than €135 million, is located throughout the Randstad area, with a focus on Amsterdam, Amstelveen and The Hague. The value of the assets suggests a loan-to-value ratio of around 58 percent.

ABN Amro, which financed the original acquisition of the portfolios, was the arranger and placement agent of the transaction. PGIM took a majority fixed-rate participation in the facility, while ABN Amro took a minority floating-rate participation.

The refinancing deal was closed “at more attractive terms” than the original acquisition financing, said Hedde Reitsma, partner at OCP.

David Gingell, PGIM REF’s head of Continental Europe, senior debt originations, said: “We are very excited because this represents a series of firsts for us: our first residential financing in the Dutch market, a preferred asset class of PGIM Real Estate Finance globally; the first time we have supported OCP in their growth ambitions; and the first time we have partnered with ABN Amro to provide an innovative and flexible financing solution.”