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TH and NEINVER opt for €344m outlet retail financing

US pension fund TIAA and European outlet retail investor NEINVER have sourced a €344 million financing of five outlet retail properties, located in Spain, Italy and Poland, which they recently bought through a joint venture.

US pension fund TIAA and European outlet retail investor NEINVER have sourced a €344 million financing of five outlet retail properties, located in Spain, Italy and Poland, which they recently bought through a joint venture.

Vicolungo The Style Outlets, Italy

TIAA subsidiary TH Real Estate, which is acting as investment advisor to the joint venture, secured the debt package.

Last November, the partners bought a portfolio of six assets from IRUS European Retail Property Fund, which is part-owned and managed by NEINVER. The properties are: The Style Outlets centres in Greater Madrid’s Las Rozas, San Sebastián de los Reyes and Getafe areas, as well as Italy at Vicolungo, close to Milan, and Castel Guelfo near Bologna. The purchase also included the Factory Poznań outlet in Poland. The assets have a combined gross asset value of more than €700 million.

The portfolio, excluding the Bologna property, has been financed through three separate loans. French banks Crédit Agricole and Natixis, plus Spanish bank Sucursal en España provided a €187 million, seven-year financing of the three Spanish assets.

Crédit Agricole’s Milan Branch was the sole lender of a €126 million seven-year facility for the Vicolungo, Milan outlet centre.

The Polish centre was financed by a syndicate led by ING Bank through an extension to an existing facility on two other Polish assets owned by the joint venture. BNP Paribas subsidiary BG BNP Paribas also took part in the financing.

Farrah Brown, head of treasury at TH Real Estate, said that the debt deal needed to be closed within a “tight timeframe”.

“The financing will further support the strong investment performance and returns expected for our investors, across this leading outlet mall portfolio, which now comprises 11 strong assets in Europe,” Brown said.

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