Two German banks pick insurer partners to write big-ticket loans

Helaba joins with Standard Life for UK loan, ERGO lends with pbb in Germany

Two German banks announced significant loans in partnership with insurance groups, in a sign that the trend for banks and insurers to lend together is gathering pace. In the UK, Standard Life Investments took a £50m participation alongside Helaba in an extended, £143m facility arranged by the German bank for UK REIT LondonMetric.

The senior debt, secured on a UK logistics portfolio, is Standard Life’s first senior loan after launching a £250m Standard  Life Assurance debt investment drive last September. The mandate is run by head of real estate lending Neil Odom-Haslett, who has recruited former JC Rathbone Associates director Caroline Snowden as commercial lending manager.

In Germany, insurer ERGO partnered with pbb Deutsche Pfandbriefbank on €388m of loans for the Schwabinger Tor mixed-use project in Munich. Deutsche Pfandbriefbank structured the facility and is facility agent. The 20-year loans will finance investment in existing properties and 90,000m2 of development.

The scheme includes an ANDAZ by Hyatt hotel, retail, housing and restaurants. ERGO is part of Munich Re and operates in 30 countries. It set up a commercial real estate financing team last year. Schwabinger Tor’s long tenor and location made it “a perfect match to the long-term liabilities of our life and health insurance companies,” said ERGO Insurance Group board member Daniel von Borries.