Pbb provides €100m loan for Hamburg project

German lender pbb Deutsche Pfandbriefbank is providing a loan of more than €100 mln for a mixed-use project in Hamburg’s city centre.

The facility is being granted to a special purpose vehicle (SPV) of Dusseldorf-based developer Centrum-Gruppe. The loan contracts were signed in December 2014.

The loan will be used to finance the demolition of an existing building on 22-26 Spitalerstraße in Hamburg and the subsequent construction of a larger, seven-storey retail and office building. In total, 10,500 m2 of retail and office space will be created. Most of the retail space has already been let.

Gerhard Meitinger, head of real estate finance Germany at pbb Deutsche Pfandbriefbank, said: 'With this project - which involves the demolition of an existing building and construction of an attractive new building - pbb Deutsche Pfandbriefbank’s structured finance approach and the replacement of the existing complex finance structure were convincing. The bank is thus part of an inner-city development and is providing a contribution to Hamburg’s urban development.’