Aareal Bank has provided a £290 mln (€351 mln) senior loan to retail investment company Redevco to fund the acquisition of a portfolio of 16 retail warehouses across the UK.
The financing marks Aareal Bank’s first engagement with Redevco, a real estate company of private conglomerate Cofra Holding, and represents one of the largest retail property transactions in the UK market in 2024.
The acquired portfolio assets are located in core urban centres, primarily in southern England, and feature a diversified tenant line-up of both national and international retailers. A substantial part of the portfolio’s in-place rent is secured by prominent food retailers.
Redevco acquired the portfolio through a share deal transaction from Oxford Properties and M7 Real Estate to enhance its position in the UK. The off-market deal aligns with the company’s goals to strengthen its portfolio and capitalise on future growth opportunities in the retail sector.
‘Our first financing with Redevco, a leading European retail investor, is setting a benchmark for the industry,’ said Severin Schoettmer, managing director special property fnance at Aareal Bank. ‘This transaction, one of the largest retail deals in the UK in 2024, highlights our ambition and commitment to financing prime retail transactions with top players across Europe and beyond.’
Manolito van Ardenne, CFO of Redevco added: ‘Partnering with Aareal Bank enhances our UK portfolio in resilient retail segments, aligning with shifting consumer preferences shaped by e-commerce trends.
‘This acquisition, bringing our pan-European retail parks platform’s gross asset value to circa €5 bn, represents a robust cash flow which we expect to increase to a yield north of 6.5% once live asset management initiatives complete.’
Aareal Bank acted as the arranger, facility agent, and security agent for the transaction.
Eastdil Secured served as the exclusive financial advisor for the transaction. The legal advisory roles were handled by Pinsent Masons for Aareal Bank and CMS for Redevco, Knight Frank provided valuation services to Aareal Bank.
