BGP in €406m refinancing of German housing portfolio

BGP Asset Management is supporting BGP Investment in the tendering and implementation of securitised refinancing of a German residential real estate portfolio consisting of around 10,000 units with a loan value of €406 mln.

Deutsche Bank acted as arranger of this commercial mortgage-backed securities (CMBS) transaction and JP Morgan was co-lead manager.

The portfolio, with a market value of around €600 mln, is owned by BGP Investment, and is mainly located in Berlin, Kiel and in the Cologne-Düsseldorf area.

In addition to refinancing an existing securitisation and separate smaller bank loans, the transaction also generated additional external funding for repositioning certain properties based on a value-enhancing strategy developed by BGP Asset Management.

The refinanced portfolios account for some 60% of the entire real estate portfolio overseen by BGP Asset Management worth around €1 bn. 'This refinancing achieved a material part of our initial goals, namely the sustained turn-around of BGP Investment’s German residential portfolio,' said Thomas Drastik, managing director of BGP Asset Management.

BGP Asset Management was founded in 2009 with the goal to stabilise the German residential portfolio owned by BGP Investment which was formerly managed by Babcock & Brown.