UK REIT Segro has arranged €208 mln in bank debt to help fund the joint venture acquisition of a large, multi-country portfolio of pan-European logistics assets.

UK REIT Segro has arranged €208 mln in bank debt to help fund the joint venture acquisition of a large, multi-country portfolio of pan-European logistics assets.

Segro European Logistics Partnership (SELP) - a €1 bn joint venture between Segro and Canadian pension group PSP Investments - agreed in February to acquire the portfolio for €472 mln.

The vendors were the CCP III fund managed by Tristan Capital Partners and the EPISO fund managed by Tristan and AEW Europe. The 679,000 m2 portfolio comprises 10 assets in Germany, three in Poland and one in France.

The new debt is structured within three separate secured bank facilities. The largest is a new 5-year, €139 mln German debt facility with pbb Deutsche Pfandbriefbank and Helaba as lenders. This facility comprises €114 mln of drawn term debt and €25 mln of undrawn facilities to be used for future development projects.

The second element comprises €41 mln. This comes on top of the €188 mln, five-year SELP debt facility - also with pbb Deutsche Pfandbriefbank and Helaba - which was put in place in October 2013 in relation to SELP assets in Poland and the Czech Republic.

The final element is €28 mln of term debt which comes in addition to the €140 mln, seven-year SELP French debt facility arranged in October 2013 with Aareal Bank.

The new outstanding debt provides a weighted average loan-to-value ratio of around 39% on the portfolio acquisition value and is structured as fixed rate loans with a weighted average blended margin of 1.6% and a weighted average blended total cost (excluding amortisation of up-front fees) of 2.2% per annum over the life of the facilities.