Pbb provides financing for Swedish resi deals

Pbb Deutsche Pfandbriefbank has arranged acquisition financing for two residential portfolios in Sweden.

The German property financier said it has closed a SEK 550 mln (€65 mln) transaction with a subsidiary of Stockholm-listed residential property investor Victoria Park on 20 August.

The loan will be used to acquire two residential portfolios in the city of Linköping and Markaryd municipality. The portfolios comprise 176,000 m2 distributed over 2,178 apartments. The vast majority of the apartments are in Linköping.

Greg Dingizian, CEO at Victoria Park, said: 'The deal is of strategic importance to Victoria Park. With the acquisition we take a big step in our ambition to establish Victoria Park as a major player in the Swedish residential market.'

Victoria Park owns 243,000 m2 of residential and about 18,000 m2 of commercial space. In addition, the company owns development rights of approximately 19,000 m2 in Limhamn, Malmö.

News of the loan transaction follows the announcement at the start of the week that pbb Deutsche Pfandbriefbank and Nordic financial group Skandinaviska Enskilda Banken have closed a new €240 mln loan with Cornerstone Europe's €1 bn Nordic Retail Fund.

Comming on the Victoria Park transaction, Norbert Müller, head of real estate finance for continental Europe West at pbb Deutsche Pfandbriefbank, said: 'The residential market offers attractive risk-adjusted returns and we are keen to grow our exposure in this market segment. Our Stockholm-based team is working on further transactions, Sweden remains our major market within the Nordic countries.'