German lender pbb Deutsche Pfandbriefbank has provided Growth Industrial Asset Net-Income Trust (GIANT) with €260 mln investment financing in support of the trust's €450 mln acquisition of 34 logistics and industrial properties in Germany and the Netherlands.
'With this transaction, pbb Deutsche Pfandbriefbank, together with its equity providers and partners, has come up with a financing that constitutes one of the largest and most complex loan structures the logistics real estate segment has seen in 2016,' commented Gerhard Meitinger (pictured), head of Real Estate Finance Germany at pbb Deutsche Pfandbriefbank.
Initially, pbb provided a senior loan of €260 mln at deal closure, before placing some €140 mln of that loan in December 2016. Berlin Hyp and Landesbank Baden-Württemberg (LBBW) have each taken a €70 mln participation on their books, while a group of pension funds is also engaged in the financing, with an equity share plus a mezzanine loan.
'We succeeded in bringing together three financiers and the initiator, and finding the right structure for each of them – thereby proving our particular expertise in providing financing for complex portfolio deals involving senior and mezzanine tranches,' added Mietinger.
The industrial properties acquired by GIANT were previously managed by GARBE Industrial Real Estate. Covering approximately 797,000 m2, the portfolio mostly comprises logistics space, although there is an additional 5,000 m2 of retail and 105,000 m2 of light industrial space. GARBE will continue to service the portfolio as investment and asset manager.
