€1.3bn Perella group starts major projects in Frankfurt, Berlin

12 April 2016 10:00

pbb

German lenders pbb Deutsche Pfandbriefbank and Deutsche Hypothekenbank have jointly arranged a €267m loan for the New York-based Perella Weinberg Real Estate's Fund II to finance the Marieninsel development project in Frankfurt/Main.

As lead manager for the facility, pbb structured the financing and will also act as facility agent and security agent. Pbb and Deutsche Hypo are taking an equal share in the loan.

Marieninsel involves the development of two high-rise buildings in Frankfurt’s city centre. The larger of the two towers is the Marienturm which will occupy a site on the Taunusanlage park within the central business district. The 38-storey building will be 155m high and offer 44,900 sqm of space. The adjoining Marienforum will be 40m high and have 11,700 sqm of gross lettable area. Local developer Pecan Development has been mandated with the project's construction.

Charles Balch, pbb’s head of international clients for UK & CEE, said the lender has a long-standing business relationship with PW Real Assets. “The Marieninsel development is an exciting project, located in Frankfurt’s city centre. Here we have high-quality office premises being built in an absolutely top location,” he said.

The Perella Weinberg Real Estate Fund II (PWREF II) is a private vehicle which focuses on investment in Europe. The fund is capitalised with over €1.3bn equity.

This week pwr development, a subsidiary of PW Real Assets, started initial construction of what will be a major €500m mixed-use urban quarter development on the "Areal am Tacheles" between Friedrichstrasse and Oranienburger Strasse in Berlin Mitte. After demolition of existing buildings and extensive excavation, surface construction and refurbishment will start in 2018, with the last building scheduled for completion in 2020.

The Perella Weinberg Real Estate Fund II LP bought the site in 2014, with prominent German fund initiator Anno August Jagdfeld selling the run-down Tacheles building, the former Wertheim department store and a 22,000 sqm plot on the site for about €200m.