One of the largest European real estate deals this year has been financed by LBBW, ING Real Estate Finance and pbb Deutsche Pfandbriefbank with a €625 million loan.
The 10-year debt package was provided to a joint venture between Oxford Properties Group and Madison International Realty, which bought the Sony Center in Berlin in October for around €1.1 billion. The purchase price implies a loan-to-value ratio of around 57 percent. The pricing of the loan was undisclosed, but it is understood to be in line with typical senior margins for German prime offices, which CBRE’s data put at 1 percent.
LBBW is taking the largest share of the financing in the lending consortium – in which pbb acted as a facility and security agent – although the amount provided by each bank was not disclosed.
The Sony Center at Potsdamer Platz in Berlin was developed by Tishman Speyer on behalf of Sony and completed in 2000. The complex consists of eight buildings, including a 26-storey office tower, and offers a total of almost 112,000 square metres of rentable space that is currently occupied by tenants including Deutsche Bahn, Facebook, Sanofi, Sony and the State of Berlin.
“The Sony Center is a landmark in Berlin – we are therefore particularly pleased that we were able to support two renowned investors in their latest project as mandated lead arrangers together with ING and pbb,” said Thorsten Schönenberger of LBBW’s board of managing directors.