US insurer’s real estate debt arm also lines up £280m City transaction
Pricoa Mortgage Capital has made its third European loan since the US lender set up shop here last year.
Through an existing relationship with WP Carey, Pricoa has lent the US REIT €55.5m of senior finance, secured on six logistics properties in the Netherlands.
Pricoa is also leading on a deal to provide £280m of senior debt to refinance Plantation Place in the City, alongside Pacific Life.
The loan for WP Carey is a seven-year, fixed-rate facility at a margin believed to be below 300 basis points.
“We believe there is a lot of high-quality property in the Netherlands and there is an opportunity because there is a lack of debt capital in the market,” said Drew Abernethy, Pricoa’s head of European originations.
The loan refinances debt previously provided by ING Real Estate Finance, which will continue to provide €15m of subordinate financing.
The assets are let to a supermarket chain recently acquired by the Netherlands’ second-largest grocer, Jumbo.
Abernethy declined to comment on Plantation Place, but said: “In the UK there is definitely a lot of interest in modest, long-term, fixed-rate debt, which is what we expected and we’re looking at a lot of things in London.”
Plantation Place’s existing £418m of senior debt is securitised in REC 5, and matures in July. There is also a £25m junior loan.
The building was bought last year by Brazilian investor Moise Safra.
Pricoa’s first two loans were in the UK. It lent £70m to the Gabbay family’s O&H Proper- ties, secured on four London offices and a Bath retail property, and subsequently made a supplemental loan to the same borrower for more assets.
Pricoa, the commercial mortgage lending business of giant US insurer Prudential Financial, is targeting Germany as well as the UK and Nether- lands in Europe.
It favours income-producing office, logistics, multi-family housing and retail properties. “One of our strengths is we can do big deals,” Abernethy added.
Pacific Life does not yet have a Europe-based team and is running the Plantation House financing from California.