Pbb Deutsche Pfandbriefbank and Erste Group have provided a €126 mln facility to a consortium led by Morgan Stanley Real Estate Investing to finance the acquisition of a property portfolio in the Hungarian capital Budapest.
Pbb Deutsche Pfandbriefbank and Erste Group have provided a €126 mln facility to a consortium led by Morgan Stanley Real Estate Investing to finance the acquisition of a property portfolio in the Hungarian capital Budapest.
Germany's pbb and Erste of Austria have jointly underwritten the senior facility in one of the biggest financing transactions in Hungary in recent years.
The borrower consortium comprises MSREI, Hungarian property developer and investor Wing and Austrian shopping centre manager and investor CC Real.
The proceeds will be used to finance the acquisition of a prime real estate portfolio in Budapest. The transaction closed on 31 July 2015. Pbb and Erste Group are acting as joint lead arrangers, with pbb carrying the role of facility and security agent.
The portfolio consists of MOM Park, a 31,500 m2 prime shopping centre with an adjacent office building of 19,300 m2 on the Buda side of the city. It also comprises the West End Business Centre, a prime, 28,800 m2 office building and EMKE, a 13,700 m2 office building on the Pest side of Budapest. The portfolio was acquired from a fund managed by AEW Europe.
Charles Balch, head of international clients, UK & CEE at pbb Deutsche Pfandbriefbank, commented: 'This is a major transaction for the Budapest real estate market, which has seen positive signs recently. We are pleased to support Morgan Stanley Real Estate Investing and its partners with this landmark financing transaction. We will continue to carefully evaluate prime opportunities in Budapest, as part of our general strategy across CEE.'