ADIA has financed two Paris offices with debt from Helaba, pbb Deutsche Pfandbriefbank and Allianz Real Estate.
The three lenders provided a floating-rate loan of more than €300m for 6-8 Boulevard Haussmann and Le Capitole, a 65,000m2 building in Nanterre, western Paris.
The margin is thought to be very competitive, at about 150 basis points. The assets are the most valuable in a larger portfolio acquired by the sovereign fund last December when it bought Docks Lyonnais from UBS Wealth Management at around a 10% discount, for €672m.
UBS’s Continental Europe Property Fund, which owned Dock Lyonnais, is liquidating. The acquisition is thought to be ADIA’s biggest in France.
The Boulevard Haussmann building, which is in a prime location and over 50% vacant, was collateral for one of the loans in the Windermere XIV CMBS and Lone Star had tried to acquire it.
Helaba and Deutsche Pfandbriefbank were co-arrangers and also arranged the swap. Allianz Real Estate invests in senior debt on behalf of the group’s insurance companies.
Roland Fuchs, Allianz Real Estate’s European property head, said: “This was a benchmark deal for us because it is standard, floating-rate type European lending.
“We can do 50-70% loan to value, short or long maturity, core and core-plus and fixed or floating loans.” He declined to comment on the sponsor or details of the deal.
ADIA bought a 700,000 sq ft retail portfolio in Lyon 18 months ago from ANF, in a joint venture with Grosvenor.
Allianz adds French deals to German presence
Allianz Real Estate began investing in debt in Germany two and a half years ago, setting a target of investing €5bn within five years.
It completed another large, French, floating-rate financing in the first quarter of 2014, joining a syndicate put together by Natixis.
These two French deals took Allianz’s investment in senior debt to €1.8bn, and the split of its book to 66% in Germany and 34% in France.
Fuchs was head of Helaba in France before joining Allianz last year. Allianz’s French team includes Carole Tran Van Lieu, head of real estate financing in France, and Bruno Dord.
Allianz is now also looking for financing opportunities in Spain, particularly offices in Madrid or Barcelona, and large shopping centres.