Pradera secures €360 million senior loan facility to refinance its pan-European retail park investment vehicle
London , United Kingdom

Pradera, the leading retail real estate asset, investment and fund management specialist, is pleased to announce the debt refinancing of its pan-European retail park investment vehicle, Pradera European Retail Parks SCSp (the “Partnership”).

The Partnership was established in 2017 to acquire retail parks situated adjacent to IKEA stores in 18 locations in Germany, France, Poland and Czech Republic. The original acquisition was financed with a mixture of capital from third party investors and five-year loan facilities, due to expire in May 2022.

The Partnership has secured a new €360 million senior loan facility from Aareal Bank and has raised €35 million of additional commitments, almost exclusively from existing investors, reaching the hard cap for the issue. The new funds have allowed the Partnership to repay, in full, the original loans financing 17 of the Partnership’s assets in Germany, France and Poland. The Partnership’s single asset in Czech Republic is separately financed.

Andrew Payne, Director, Funds at Pradera commented: “we are delighted to have secured the €360 million  loan from Aareal Bank and to have received such strong support from the Partnership’s existing investors. The Partnership’s portfolio has recovered quickly as restrictions to limit the spread of the pandemic have been lifted across Europe.  After a challenging period for retail investment, we see increasing investor and lender appetite for assets that offer reliable, diversified income, as evidenced by the refinancing of the Partnership’s loans.”

Christof Winkelmann, Member of the Management Board at Aareal Bank also commented: “we are delighted to add another chapter to the success story of our long-standing relationship with Pradera. We’ve been able to support our client once again with pan-European financing expertise and a tailor-made solution. The quality of the retail concept and Pradera’s management skills are particularly evident in times of crisis; the resilience of the portfolio is an impressive proof.”

Colin Campbell, Chairman at Pradera, added: “in addition to the successful closing of a €360 million, multi-country, retail sector portfolio refinancing, this transaction marks 25 years of uninterrupted borrowing from Aareal Bank by Pradera and my previous company before that. We believe strongly in the benefits of long-term relationships with all our stakeholders, to which this loan bears witness.“