German lenders show no signs of slowing

Despite muted sentiment among German lenders following lackluster growth in the German economy last year, some sizeable loans have been dished out this month.

Leading the way was LBBW, which has agreed to provide €1.1b in long-term financing to global real estate services company Brookfield Properties for the redevelopment of the Potsdamer Platz site in Berlin.

Since Brookfield Properties took over the management of Potsdamer Platz at the end of 2015, it has been able to implement large parts of its overall strategy, with an occupancy rate of 90%, according to Karl Wambach, the group’s senior vice president. ‘We are planning an extensive modernisation of the Potsdamer Platz Shopping Arkaden and upgrading the public realm to modernise and enhance this dynamic destination for all those who work, live and visit,’ he said.

Berlin's Potsdamer Platz quarter was redesigned in the 1990s following the planning and designs of an international team of renowned architects, led by Renzo Piano, Hans Kollhoff and Sir Richard Rogers. In total, Potsdamer Platz comprises 17 buildings, ten streets and two squares. The quarter's total rental space spans around 270,000 sqm and has been awarded the silver certificate by Germany's DGNB, or German Sustainable Building Council.

‘The Potsdamer Platz quarter is one of Berlin's prominent landmarks—we are really looking forward to accompanying Brookfield Properties as the financing partner for this project,’ said Patrick Walcher, global head of real estate at LBBW. ‘The financing represents another important milestone in our histories and strengthens our long-standing business relationship,’ he added.

Also, in partnership with Sparkasse Köln Bonn and Kreissparkasse Köln, Berlin Hyp has granted a development loan of €167m to a joint venture between Art Invest Real Estate and OSMAB Holding AG for ‘I/D Cologne’, the largest commercial project in Cologne, which will be developed over the next seven years on the former freight station site of Cologne-Mülheim. The project comprises around 10 buildings on a site of 160,000 sqm GFA, including offices, a hotel component and gastronomy.

Berlin Hyp is also providing LBBW Immobilien Management GmbH with a loan of €55.7m for a term of 10 years to refinance and refurbish the Lautenschlager Areal site in Stuttgart. The site consists of four buildings. In the first phase, which was completed in 2017, two new buildings were built and one existing property was refurbished. In April, construction work will begin on the listed main building, which has already been gutted, leaving its historic outer façade. It is due to be completed by the end of 2020. In total, the 13,100 sqm complex offers a mix of office, retail, gastronomy and residential space.

Hamburg Commercial Bank, formerly HSH Nordbank, has provided a loan to New York-based investor Westbrook Partners for the acquisition and refurbishment of an office in Düsseldorf. The purchase price has not been disclosed. The ‘Fritz’ building, in the business district of Seestern, comprises 17,000 sqm. Westbrook’s managing partner, Ruben Herrmann, described the acquisition as ‘a perfect fit’ for the group’s investment strategy, which includes investing in Germany’s ‘Big 5’.

Pbb Deutsche Pfandbriefbank has also provided a €36m loan to Art Invest Group for the purchase of the 'Walzstahlhaus' in Düsseldorf's city centre. The property has a lettable space of around 9,000 sqm and is almost fully let to AOK Rheinland/Hamburg, a statutory health insurance fund.

‘We look back on a long-standing and successful business relationship with Art Invest,’ said Gerhard Meitinger, head of real estate financing Germany at pbb. ‘We are delighted to be supporting the company with yet another transaction.’

The 'Walzstahlhaus', or rolled steel house, was built for the association of German rolled steel entrepreneurs between 1938 and 1940, in the neo-classical style and is a listed building.

Over in Austria, pbb Deutsche Pfandbriefbank has also been busy: it provided a credit facility of around €39 m for the acquisition of an office property in Vienna to a fund managed by Inmark Asset Management on behalf of various South Korean investors, with Rock Capital as the local asset manager. pbb acted as arranger and sole lender under the facility.

‘This is the second office tower that Pbb has financed in this vicinity and with Porr as the main tenant,’ said Charles Balch, head of international clients, UK, CEE & USA at pbb Deutsche Pfandbriefbank. ‘The Vienna office market shows strong fundamentals, making this an attractive property to finance.’

The fully let building comprises around 18,500 sqm of rentable space spread over seven floors and is also the headquarters of UBM Development. (ssk)