German lenders BayernLB and pbb Deutsche Pfandbriefbank have granted a €144.6 mln senior loan and a €48.2 mln VAT facility to a joint venture between Canadian REIT Inovalis and global asset manager Sedco.
The loan goes to support the forward purchase of a new office scheme for the French capital, executed by Inovalis and Sedco. Dubbed the Convergence building, and located in the Rueil-Malmaison district, the property will comprise 25,000 m2 of space and has already been fully let to French multinational Danone on a 12-year lease. The parties have agreed to deliver the scheme by May 2020.
Norbert Müller, pbb's head of real estate finance Continental Europe West, commented: 'Pbb knows both the asset and the developer very well. Furthermore, we have a longstanding relationship with Inovalis and Sedco. The transaction demonstrates the strong appetite of pbb Deutsche Pfandbriefbank to underwrite significant loan amounts for well-located office buildings and to support our clients in France.'
Sébastien Liberge, head of real estate finance at BayernLB, added: 'We’re glad that a tandem of reputable partners such as Inovalis and Sedco trusted us for tailoring a bespoke financing package. The French market is and remains a keystone in BayernLB’s Real Estate financing strategy.'
While both banks acted as joint mandated lead arrangers, pbb said it was also acting as facility and security agent in the transaction.