German lender Berlin Hyp is providing a €710 mln loan to Deutsche Wohnen to finance a residential portfolio in Berlin, marking the German lender's biggest loan of the year, according to Assem El Alami, head of real estate financing at the bank.
German lender Berlin Hyp is providing a €710 mln loan to Deutsche Wohnen to finance a residential portfolio in Berlin, marking the German lender's biggest loan of the year, according to Assem El Alami, head of real estate financing at the bank.
The portfolio comprises 29 properties with 6,800 units, covering a total area of around 400,000 m2 and located mainly in the Reinickendorf, Spandau and Steglitz-Zehlendorf districts of Berlin.
'The risk profile of the portfolio was conservative and we have already worked with Deutsche Wohnen on previous loans,' El Alami told PropertyEU at EXPO REAL. 'We will sell off part of the loan to the German Sparkassen, or savings banks.'
Other mega loans could also be on the cards: 'If another lending opportunity like this comes along tomorrow, we will look at it in the same way. We're also willing to finance resi development across Germany. We normally don't go below €10 mln though,' El Alami said.
Berlin Hyp is 'very enthusiastic' about the Berlin market, citing a scarcity of residential property with vacancy rates standing at just 2%.
'We are delighted to deepen and further extend our business relationship with Deutsche Wohnen-Gruppe with this finance,' added Gero Bergmann, board member at Berlin Hyp. 'This loan is renewed proof of Berlin Hyp’s competence as a real estate finance provider and our extensive expertise in the residential sector.'