Hillwood Investment Properties (“Hillwood”) has closed a €264.4 million refinancing facility with Aareal Bank AG and Deutsche Pfandbriefbank AG (pbb) for a portfolio of eight German logistics assets totalling approximately 258,000 sq m. The senior loan refinances the existing debt across the portfolio, which is held through Hillwood’s EU Industrial Club IV investment vehicle.
The portfolio comprises eight freehold logistics properties across Berlin, the Ruhr Region, Hanover, Leipzig, Magdeburg, Dusseldorf and Southern Karlsruhe. The refinancing, arranged as a club deal between two of Germany’s leading real estate lenders, consolidates the portfolio’s capital structure under a single facility and provides Hillwood with additional flexibility as the remaining assets move through their stabilisation phase. Eastdil Secured acted as exclusive financial advisor to Hillwood on the transaction.
Armin Senoner, Director of Debt Capital Markets at Hillwood Investment Properties, said: “This refinancing is an important milestone for our EU Club IV portfolio and reflects the strength of the underlying assets and Hillwood’s long-standing relationships with Germany’s leading real estate banks. We are pleased to have structured this as a club transaction with Aareal and pbb, two institutions with deep expertise in the German logistics sector.”
Severin Schöttmer, Managing Director Special Property Finance at Aareal Bank AG, added: “Relationship, asset quality and sustainability are at the core of this refinancing. We are pleased to further strengthen our long-standing partnership with Hillwood.”
Gerhard Meitinger, Managing Director, Head of REF Germany at Deutsche Pfandbriefbank, added: “Logistics properties located in economically strong regions with good transport links remain a key component of our financing strategy. With this transaction, we are supporting our established long-term partner Hillwood with outstanding expertise in this market segment.”
About Hillwood Investment Properties
Hillwood is a global logistics real estate platform with a 30-year track record, having acquired and developed over 29 million sq m across six countries. In Europe, Hillwood has been active since 2013 and has deployed more than €5.1 billion across the UK, Germany and Poland, with approximately 0.9 million sq m of logistics space developed in Germany alone. The platform operates from 12 offices globally with over 400 associates.
About Aareal Bank
Aareal Bank AG is a leading international provider of smart financing, software products, digital solutions and payment services for the real estate sector and related industries. Headquartered in Wiesbaden, Germany, the bank is active in over 20 countries across Europe, North America and Asia-Pacific.
About Deutsche Pfandbriefbank
Deutsche Pfandbriefbank AG (www.pfandbriefbank.com) is a leading specialist in the financing of commercial property in Europe. pbb is a major issuer of Pfandbriefe and thus also a key player in the European markets for covered bonds as a whole. pbb’s shares are listed on the Frankfurt Stock Exchange.