Two German banks, pbb Deutsche Pfandbriefbank and Helaba, have granted a €188 million five-year secured loan to Segro European Logistics Partnership (SELP) for an acquisition of Polish and Czech seed assets.
SELP, a joint venture between Segro PLC and Canadian state-controlled pension fund PSP Investments, has purchased a portfolio of 10 grade-A logistics assets, nine of which are located in Poland and one in the Czech Republic. The investment also includes a land bank of 520,000 sqm, providing potential for further development.
Most of the loan, specifically €166 million, has been earmarked for the acquisition of the portfolio and land, while the remaining €22 million will be set aside to refinance future properties. The transaction closed on October 11.
“This financing highlights [pbb’s] continued presence in the logistics sector across European markets,” said Charles Balch, Head of Real Estate Finance International Clients, UK and CEE, at pbb Deutsche Pfandbriefbank.
SELP’s overall portfolio consists of 34 logistics properties totaling 1.6 million sqm of space. Its assets are located in Poland (38 percent of the aggregated floorspace), France (36 percent), Germany (13 percent), Belgium/Netherlands (9 percent) and the Czech Republic (4 percent).
The joint venture was formed in late June this year, when the Canadian PSP purchased a 50 percent stake in Segro’s European logistics portfolio. David Sleath, chief executive of Segro, said, “The creation of SELP is an important step for Segro in strengthening our position as one of the leading providers of logistics space in Continental Europe. We are excited about the prospects for the venture and the opportunity it provides to leverage and grow our platform in this attractive and growing sector.”
The entire portfolio held by SELP is valued at €1 billion. The company stated it wants to expand its holdings to a value of at least €2 billion through developments and acquisitions.
“Our participation in this joint venture advances our strategy of investing in high-quality logistics properties in Europe. We see this core investment as a unique opportunity for PSP Investments to build a scalable Continental European logistics portfolio,” said Neil Cunningham, senior vice president of Real Estate Investments at PSP Investments.
Helaba, hedquartered in Frakfurt and Erfurt, has financed many office, retail and logistics properties in Poland, the Czech Republic and Slovakia. In September of this year the bank provided Curzon Capital Partners III with a five-year loan in the amount of €75 million for the purchase of the Mokotów Nova office scheme in Warsaw from Belgian developer Ghelamco.
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