German office specialist Godewind Immobilien has secured an €82 mln refinancing package for three assets in its portfolio.
The loan from DZ Hyp will refinance the ComConCenter properties in Frankfurt, the Airport Business Centre in Düsseldorf and Pentahof in Hamburg, which were acquired for a total purchase price of €142.4 mln, over a five-year term at an interest rate of 1.09%.
It supersedes an existing facility with a 1.87% interest rate, allowing Godewind to bring down the average cost of borrowing across its portfolio to around 1.5%.
Godewind boosted its portfolio in the autumn after raising €375 mln in an IPO on the Frankfurt Stock Exchange in March. It has also acquired the Frankfurt Airport Centre, a 48,140 m2 office complex, from Madison International Realty and Peakside Capital for €168 mln at a gross initial yield of around 5.5%, and an office building in Kirchheim, near Munich, for €30.5 mln.
Both properties have relatively high vacancy rates – 63% in the case of the Munich property – which fits with Godewind's strategy of adding value by sourcing new tenants for empty office buildings.
The company says its portfolio has an overall vacancy rate of 28% at acquisition, giving it ‘significant potential for organic value appreciation’. It has set a target of expanding its total real estate assets to €3 bn in the medium term.