Aareal puts up funding for F&C Reit’s Aberdeen mall buys

Aareal Bank is financing F&C Reit’s £189m acquisition of the Bon Accord and St Nicholas shopping centres in Aberdeen.

In March, Aareal lent against schemes in Inverness, Grimsby and Burton-on-Trent, which F&C Reit bought from the Grosvenor Shopping Centre Fund.

A shopping centre investment market revival this year has offered more debt financing opportunities for large assets.

Bids have been received on Queensgate shopping centre in Peterborough in the past two weeks, while Land Securities has appointed Cushman & Wakefield to sell Dundee’s Overgate Centre.

Last month GE Capital Real Estate beat about 10 lenders to fund Blackstone’s £186m purchase of Glasgow’s St Enoch Centre from Ivanhoé Cambridge. LandSec and British Land sold the Aberdeen schemes.