TH Real Estate targets €500m refi for Cityhold assets

TH Real Estate is preparing to launch a search for circa €500 million of debt to refinance its €2.2 billion Cityhold Office Partnership, Real Estate Capital has learned.

TH Real Estate is preparing to launch a search for circa €500 million of debt to refinance its €2.2 billion Cityhold Office Partnership, Real Estate Capital has learned.

The investment manager’s partnership with two Swedish pension funds owns a portfolio of 15 assets including core properties in the UK, France and Germany.

TH Real Estate is understood to have appointed a debt advisor to help it source the finance and is likely to go out to the market in the coming weeks.

The institutional investor is aiming to refinance a €300 million bridging loan which was arranged last September and will also refinance around €200 million of legacy debt which is secured by elements of the portfolio.

TH is aiming to secure a part-euro and part-sterling refinancing, weighted towards euros. It will target a circa 40-50 percent loan-to-value overall.

Tour Areva in Paris - one of the assets held by Cityhold.
Tour Areva in Paris – one of the assets held by Cityhold.

Last September, TH sourced a €231 million, 18-month loan to finance six of the 15 assets held by the partnership, including Tour Areva in Paris (pictured). ING provided the loan. The facility was later extended to cover a London office purchase.

The Cityhold Office Partnership was created last August when TH’s parent company TIAA-CREF teamed up with Swedish national pension funds AP1 and AP2. It is targeting an additional €2 billion of investment over the next three years and will invest in value-add opportunities such as leasing, renovation and development in cities including Madrid and Milan as well as in UK, Germany and France.

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