German insurer Allianz and German lender Aareal Bank have teamed up to underwrite a €610 mln loan for a pan-European property portfolio, they announced today.
Allianz Real Estate will provide €366 mln of the € 610 mln financing, which is granted for a 10 year term, to Invesco Real Estate for a portfolio comprising 27 undisclosed assets in the UK, Spain, France, Germany, Italy, the Netherlands and Poland.
Aareal Bank will provide the remaining €244 mln of the 10-year loan. The arrangement also gives Invesco Real Estate the option of extending the facility by an additional €390 mln, taking the loan to €1 bn. Aareal Bank acted as arranger and agent.
‘With this transaction, Allianz further expands and diversifies its European real estate debt portfolio,’ said Roland Fuchs, head of European Real Estate Finance at Allianz Real Estate. ‘We appreciate the chance to accompany a like-minded investment partner such as Invesco Real Estate during the set-up of this landmark financing alongside Aareal Bank.’
The deal marks one of the biggest loan facilities and syndicated financings in the European real estate sector this year.
Christian Schmid, managing director of Business and Syndication Management at Aareal Bank, described the landmark initiative as ‘proof of Aareal Bank’s expertise in providing high-volume, cross-border and cross-currency financings in cooperation with the insurance sector’. He added: ‘It reflects our aim to further increase our syndication activities with strategic partners.’
Aareal Bank underwrote €6 bn in new loans in the first nine months of the year, according to a company spokesman. Its target for the full fiscal year is €8 bn to €9 bn. The lender’s financial results will be published on 23 February 2017. Allianz could not be reached for comment.
