Two new banks are replacing WestImmo and Deutsche Postbank in a €190m, three-bank club, refinancing a Paris office building owned by MGPA.
Le Madeleine – bought from Hammerson for €210m in 2009 for MGPA’s Europe Fund III and previously called Trois Quartiers – was refinanced by Helaba, which took part in the original deal, and new club partners Deutsche Pfandbrief-bank and Landesbank Berlin.
The original loan was €140m of senior debt, plus a €30m junior loan that Hammerson provided. The new facility is for four years.
The refinancing bears out MGPA’s belief three years ago that it acquired the asset at a large discount to the valuation, at an 8.5% initial yield after costs.
The private equity manager is scheduled to finish redeveloping the 17,300m2 of offices and 11,700m2 of retail by next year. The space is 95% pre-let.
Roland Fuchs, head of Helaba’s French branch, which is agent on the deal, said the transaction was “perfectly in line with our strategy of financing quality assets in good locations, let to solid tenants”.