Pricoa provides first European real estate loan

Pricoa Mortgage Capital has issued a £70 mln (EUR 87 mln) commercial real estate loan in the UK, the first financing since the launch of its European business earlier this year. Pricoa is one of the largest commercial mortgage lenders in the US and forms part of New York-listed financial services group Prudential Financial.

The loan has been granted to O&H Group, a family-run business with real estate holdings and development projects in central London and throughout the UK. The loan is secured by four multi-tenanted office properties in central London and a grocery-anchored retail property in the historic town of Bath.

The 11-year financing is Pricoa's first secured commercial real estate debt transaction in Europe since opening its London advisory office in January 2012. Pricoa is targeting EUR 400 mln of long-term, fixed-rate senior debt transactions in Europe during 2012, with the ability to do significantly more.

Pricoa said its European programme is similar to the loan structures the company offers in the US. As in the US, the lender has the ability to fund individual transactions of 'significant size'. All debt will be denominated in local currency and secured by income-producing real estate.

Initially the company will focus on office, logistics, multifamily, and retail properties in and around large population centres such as London, Paris, and the major cities in Germany. Such financing transactions may also be structured in collaboration with local banks on the European continent.