MünchnerHyp backs €136m Hamburg resi deal, boosts new lending

German lender Münchener Hypothekenbank (MünchenerHyp) said earlier this month that is providing acquisition finance of €76.5m to the Deutsche Investment - Wohnen IV open-ended fund managed by Deutsche Investment Kapital-verwaltungsgesellschaft, for the purchase of 13 residential and commercial properties in Hamburg.

The Downtown Living portfolio comprises 325 apartments with a floor area of some 20,700 m2, 51 commercial units with a usable area of some 7,500 m2 and over 200 underground and outdoor parking spaces. The properties are centrally located in Hamburg and are close to fully let.

The total capital investment is around €136m, with MünchenerHyp providing loans of €76.5m for the 13 properties and two further properties acquired by the fund last year. The seller is the Danish group, Aalborg-based De Københavnske Ejendomsselskaber.

Jan Peter Annecke, head of commercial real estate finance at MünchenerHyp commented: "This loan is very much in line with MünchenerHyp’s strategic aim of offering large-scale loans for portfolios more intensively than in the past. The bank is focusing in this regard on Germany and western Europe, including the UK. In certain cases, we also offer lending for multinational portfolios."

Florian Mundt, managing shareholder of Deutsche Investment, said the company was quick to start due diligence on the transaction since there are few large and centrally-located portfolios available in Hamburg. The fund has a target volume of €250m and has deployed about €160m already following two purchases in Hamburg and Berlin last year.

The Deutsche Investment – Wohnen IV fund has a target volume of €250 mln. The fund invests primarily in well-located residential properties in the cities of Hamburg and Berlin. 'The capital for further acquisitions is €50 mln. Smaller volumes in the lower eight-digit range may complete this amount,' added Mundt.

Deutsche Investment manages open-ended special AIFs focusing on residential and commercial properties and has €1bn of assets under management. MünchenerHyp provides finance for commercial real estate in Germany, France, Spain, the Netherlands, Belgium, Luxembourg, Austria, Switzerland, the UK and the US. 

MünchenerHyp said in April that it had written more than €5bn in new property lending in the full-year 2017, a record for the bank. It underwrote lending of €5.1bn, and re-entered the US-American market after several years of absence. Overall, its portfolio of mortgage loans rose by €1.4bn to €29.2bn.