Pbb finances Barcelona asset as part of Spanish growth strategy

German lender pbb Deutsche Pfandbriefbank has granted a €23 mln long-term facility to Madrid-based REIT Merlin Properties as part of plans to grow its business in the Spanish property market.

Pbb, acting as sole lender in the transaction, is financing building number 6 in Barcelona's WTC Almeda Park.

The property was acquired by a subsidiary of Merlin Properties in August 2014. It provides 14,535 m2 of GLA, distributed over a ground floor and four upper levels. It also has 1,000 m2 of storage space and 213 parking spaces. The building is fully let on long-term leases to blue chip multinationals such as Axa Seguros.

Although pbb has underwritten new business only on a very selective basis in Spain in the recent past, it now plans to intensify its lending activities in the country. With the economic recovery the bank said it expects a 'positive trend' for the Spanish commercial real estate market with values and rents rising in the coming years.

'pbb Deutsche Pfandbriefbank sees great opportunities in Spain for real estate investors and the bank is open for new business,' commented Norbert Müller, head of real estate finance continental Europe West at pbb Deutsche Pfandbriefbank. 'Since 2013 we have observed investors returning to the Spanish property market in ever increasing numbers and 2014 has recorded the highest investment volume since 2007. This transaction with Merlin Properties shows our commitment to back professional sponsors and asset managers in Spain. We look forward to working together on other projects with Merlin Properties, the largest SOCIMI, or Spanish REIT.'

pbb is targeting international funds, Spanish property companies and Spanish REITs focusing on the Madrid and Barcelona office markets. The bank will also look at funding opportunities for residential portfolios in Madrid and Barcelona and for offices, retail and logistic properties in other major cities.