Aareal Bank has completed the funding of a senior loan to refinance a portfolio of three assets in Central London for the Chapter joint venture formed between Greystar, PIMCO Prime Real Estate and the Public Sector Pension Investment Board (PSP Investments).
Aareal Bank had previously been participating in the financing of these assets - namely Spitalfields, South Bank, and Aldgate - and acted as the sole arranger, lender, and security agent in the £380 mln (€442 mln) agreement.
The portfolio totals 1,747 beds in Central London and is operated by Greystar. It comes hot-on-the-heels of L&G announcing it has provided a €468 mln re-fi facility to Unite, another UK PBSA operator.
Michelle Weiss, head of hotel properties at Aareal Bank, said the ‘counter-cyclical nature and resilience’ of the PBSA market throughout the last years was testament to robust fundamentals.
‘It is reflected in the growing investor appetite in this segment. We have been keenly expanding our PBSA loan portfolio and are delighted to continue on this trajectory with such prime assets in excellent locations, backed by very reputable and experienced sponsors.’
The sponsors were advised by Jones Day for legal matters while Rothschild & Co. acted as financial adviser and Chatham Financial acted as hedging adviser. Aareal Bank received legal counsel from by Allen & Overy. Valuations were carried out by Cushman & Wakefield.
