Pricoa provides €36m financing for Hines German deal

US lender Pricoa Mortgage Capital has provided a €36 mln loan to finance Hines Global REIT’s acquisition of a logistics property in Bavaria, Germany.

The fixed-rate loan is secured by a 56,500 m2 logistics property in Forchheim near Nuremburg, wholly let to third party logistics provider Simon Hegele. Around 20,000 m2 of space is currently under construction at the property, which will be handed over to the tenant on completion. The loan is split into two tranches, the second of which will be drawn on completion of the warehouse under construction.

This loan marks Pricoa Mortgage Capital’s third European financing with Hines Global REIT.

‘Logistics is a preferred asset type of ours and the strong demand drivers for this property’s location, combined with the track record of Hines’ sponsorship, drove our interest here,’ said David Gingell, a director of originations for Pricoa Mortgage Capital.

Pricoa said it has up to €1 bn available in 2014 for long-term, fixed-rate senior debt transactions in Europe, with the ability to do ‘significantly more’ than this. The company, the lending arm of US-headquartered Prudential Financial, is primarily interested in office, industrial, multifamily and retail properties in and around large population centers in countries such as the UK, Netherlands and other major countries at the request of clients.

The firm is also interested in financing transactions in collaboration with local banks, especially on the European continent.