A new European commercial mortgage fund created by Canadian pension investor CPPIB and London-based Cairn Capital has agreed to purchase a €180 mln bond secured on properties owned by Romanian listed property firm Globalworth Real Estate Investments.
CPPIB's credit investments unit will acquire €150 mln of the bond, with funds managed by Cairn Capital purchasing the remaining €30 mln.
The bond is secured by prime real estate assets in Bucharest, Romania and is a single tranche transaction, listed on the Channel Islands stock exchange.
Cairn Capital privately arranged the bond on behalf of Globalworth. Colliers International advised on the deal.
Commenting on the deal, Martin Healey, managing director and head of private real estate debt at CPPIB Credit said: 'This investment aligns well with our strategy of providing customised, large-scale funding solutions to borrowers with excellent underlying real estate assets and strong management teams.'
Ioannis Papalekas, CEO of Globalworth, said: 'Securing the support of international real estate investors of the calibre of CPPIB is a huge endorsement of Globalworth and our position in the Romanian market. We have built a portfolio of properties that we are proud of and will continue to be an active investor where we see value, thus cementing our position as one of the leading real estate investors in the region.'
'This investment led by CPPIB, Canada’s largest pension fund and one of the world’s most prestigious investors, is a testament to the level of progress achieved and the attractive risk/return profile offered by the Romanian real estate market at present. We expect that this transaction will amplify the positive sentiment already present and likely effect a momentum that will lead to further increases in market liquidity,' added Robert Miklo, associate director Investment Services, Colliers International.
