Finance from Bayern LB and DekaBank backs TIAA-CREF mall buy in Munich

German banks Bayern LB and DekaBank are providing debt finance for US pension fund TIAA-CREF’s €400m acquisition of Munich’s Perlach Einkaufs Passagen (PEP) shopping centre.

The pension fund bought the 650,000 sq ft, 30-year-old scheme in south-east Munich in December from RREEF, which  sold the asset for its Grundbesitz Europa open-ended fund.

Grundbesitz Europa has not been affected by liquidity problems, unlike 14 other German open-ended funds and had positive inflows last year.

PEP is said to be one of Germany’s best-performing shopping centres, with turnover “well in excess of €6,000 per square meter”, said TIAA-CREF’s director of real estate investment, Aymeric Thibord.

The buyer is an existing client of both banks. Thomas Jebsen, global head of real estate at Bayern LB, said the deal was “in line with our business strategy as a corporate and real estate bank focused on Germany”.

Deka’s European head of lending, Aren Wegner, said Germany was “one of our target markets in Europe, along with the UK, France and Italy”.