Dutch bank ING is providing €231 mln in debt financing for Cityhold Office Partnership – a €2.2 bn pan-European office joint venture formed by TIAA-Cref and two of Sweden's national AP pension funds.
Dutch bank ING is providing €231 mln in debt financing for Cityhold Office Partnership – a €2.2 bn pan-European office joint venture formed by TIAA-Cref and two of Sweden's national AP pension funds.
TH Real Estate, the investment manager owned by US financial services group TIAA-Cref, said the new 18-month debt facility will be allocated over six of the existing assets held by Cityhold Office Partnership.
ING is an existing lender for TH real Estate throughout Europe.
Created in August this year, Cityhold Office Partnership’s initial platform comprises 250,000 m2 of core office space across the UK, France and Germany. The current portfolio includes 12-14 New Fetter Lane and One Kingdom Street in London, Tour Areva in Paris, and Atlantic Haus in Hamburg.
TIAA-Cref and its Swedish partners, AP1 and AP2, are committed to building a €4 bn office portfolio.
Colin Throssell, head of treasury at TH Real Estate, commented: 'We have worked extensively with ING in the past and they have proved to be a great partner in executing this cross-border, complex transaction.
'Ultimately the loan has been designed and executed so as to allow the successful launch of the Cityhold Office Partnership with competitive debt arrangements, boosting investors’ returns, but on a term and security basis that does not restrict the partnership’s longer-term, broader financing strategy. We look forward to engaging with all of the potential financing partners on the next stage of the project.'