Aareal Bank has agreed a pan-European debt facility with Invesco Real Estate (IRE) for up to €1 bn over ten years.
The facility covers 27 locations in seven European countries, including the UK, and is one of the biggest deals of its kind this year.
'For us, this is a groundbreaking project in our industry, which creates a loan facility that fits both the profile and nature of our very large and growing, high quality and diverse, pan-European mandate with properties in some of the strongest locations in the UK and Europe,' commented Andy Rofe (pictured), IRE’s managing director - Europe.
The agreement includes a drawdown of €610 mln plus the option to extend the facility by an additional €390 mln, which is yet uncommitted. Aareal Bank may syndicate parts of the facility to one or more strategic partners.
'The bespoke arranged facility will allow IRE both the stability and security of locking in low interest rates for a 10-year term,' Rofe added.
'This benchmark financing is a further milestone in financing large-volume cross-border transactions. We are delighted that our expertise puts us in a position to offer our long-standing and trusted client and partner Invesco Real Estate this flexible financing solution,' said Severin Schöttmer, managing director special property finance at Aareal Bank.
Eastdil Secured advised IRE on the transaction.
