AEW's Senior European Loan Fund II (SELF II) has completed its fourth deal with a participation of €35 mln in the financing of a portfolio of retail assets in France.
The transaction comprises a senior loan with respect to the ‘Ambassadeurs’ portfolio of 11 retail assets in France in prime locations in Paris, Lyon, Marseille, Cannes and St. Tropez.
'Ambassadeurs is our second investment in the retail sector and our second in France. We are targeting a sustained investment programme that will create a significant diversified portfolio for the fund based on our current pipeline. The loan represents a relatively limited risk, with an average LTV on the portfolio of around 60% and an interest coverage ratio over 300%,' commented Arnaud Heck, co-head of the Real Estate Finance Platform.
The assets are leased to a number of large luxury brands (Dior, Prada, Yves Saint Laurent and Chanel) and international cosmetics and ready-to-wear brands (Marionnaud, Sephora and H&M).
The fund has already invested €105 mln or more than a quarter of the €400 mln equity raised.
SELF II’s first three loans are believed to have been: a €20 mln ticket in a financing of a Paris region office portfolio; a €25 mln participation in Italian shopping centres; and €25 mln alongside a pension fund investor in a circa €90 mln financing arranged by Natixis which is secured on an office building in Niederraden, Frankfurt.
'We consider that Ambassadeurs is a rare opportunity to invest in a funding that covers a high quality retail portfolio with prestigious locations, strong tenants and an adequate financing structure. We believe that risk adjusted returns are attractive for our investors and in line with the targeted returns of SELF II of over 2%,' concluded Cyril Hoyaux, co-head of the platform.
AEW and Natixis are targeting a final close of €750 mln for SELF II.
