Deutsche Hypo and Bavarian pension fund form financing JV

Deutsche Hypo, part of German financial group Nord-LB, has formed a joint venture with pension fund Bayerische Versorgungskammer (BVK) to finance commercial real estate in Germany.

The JV will finance office and retail properties as well as residential portfolios valued at up to €500 mln. The assets will be financed in equal shares by the two partners and will be managed by Deutsche Hypo.

'As financing partners, we can now be at our customers’ disposal for significantly higher volumes,' commented Deutsche Hypo’s manager Andreas Pohl.

The company said the joint venture - which will run for an unlimited period of time - represents a pilot project for the Nord-LB Group.

'After being the first German bank to team up with non-bank lenders in 2011, we have signed this frame agreement with Bayerische Versorgungskammer which is also a novelty in the market. Deutsche Hypo is positioning itself as a provider of innovative financing solutions,' added Pohl.

BVK participated in the financing of the Silver Tower in Frankfurt in 2011.

'Mortgage loans are a safe asset class which provides a very good opportunity to continue to diversify our portfolio,' commented André Heimrich, board member and head of investment at the Bavarian pension fund.