Global real assets investor Patrizia, on behalf of Samsung SRA Asset Management, has secured significant refinancing of 55% loan-to-value on the Commerzbank Tower in Frankfurt’s banking district.
The club deal saw BayernLB act as facility and security agent, working together with pbb Deutsche Pfandbriefbank, Landesbank Baden-Württemberg (LBBW) and UniCredit.
Commerzbank Tower is the long-standing global HQ of Commerzbank, Germany’s fourth largest bank by assets. Commerzbank leases 100% of available office space within the 259-metre tower, with the ground floor featuring a public galleria with mixed retail and hospitality tenants.
Designed by Foster + Partners as the ‘world’s first ecological office tower’, the building features nine internal sky gardens and has been 100% powered by renewable energy since 2008 and is LEED Gold certified.
Philipp Schaper, CEO European Real Estate at Patrizia, said: 'Securing the refinancing of such a landmark asset is a major milestone considering the continued challenging economic environment we are operating in.
'Safeguarding client investments through solid financing in today’s tough market has never been more critical as we head into a new property cycle where value creation will be driven by hands-on quality asset management.'
The significant refinancing from the consortium of banks arranged by BayernLB ensures a basis for further ESG investments into the building, according to Patrizia.
With a net zero target by 2040, Commerzbank's sustainability strategy creates 'strong alignment of interests' with the decarbonisation pathway for the building, according to the firm.
'Commerzbank Tower is undoubtedly one of the most iconic assets in Europe’s financial sector and this new loan agreement with key banking partners shows there is still appetite to finance sustainable office assets in Europe’s prime locations,' added Schaper.
According to Oliver Sill, head of international real estate finance and funds at BayernLB, the transaction was successfully closed due to long-standing relationships with 'reliable partner banks' pbb, LBBW and UniCredit.
Ashurst and Alter Domus provided legal consultation on the refinancing.
