Pbb provides €308m loan to Sweden's largest resi owner

German lender pbb Deutsche Pfandbriefbank said on Friday that it has extended and expanded its financing to Sweden's listed residential landlord D. Carnegie & Co with the grant of a SEK 2.85 bn (€308 mln) loan to Carnegie's subsidiary, Veningen.

The seven-year loan is secured against a portfolio of 51 residential properties mainly located in the Greater Stockholm area. The properties provide some 530,000 m2 of space over close to 7,000 apartments.

The new facility will reduce Carnegie's interest costs and refinance a major part of the group's debt, according to Ulf Nilsson, CEO of D. Carnegie & Co.

Norbert Müller, head of Real Estate Finance Continental Europe West at pbb Deutsche Pfandbriefbank, added: 'I’m very pleased that we can continue and expand our relationship with the largest listed residential property company in Sweden.'

Pbb currently has a balance sheet of over €76 bn, of which about €24 bn in real estate finance. PBB’s five major lending markets in Europe are Germany; the UK; France; CEE; and the Nordic countries.

The lender was officially put up for sale last month by its parent group Hypo Real Estate Holding (HRE).

HRE has hired Citigroup and Deutsche Bank as financial advisers for the sales process, adding that a potential IPO is also being prepared as an alternative option.

Pbb is 100% owned by HRE which, in turn, is fully owned by SoFFin, the Financial Market Stabilisation Fund set up by the German government following the collapse of Lehman Brothers in September 2008 to stabilise the German banking industry.