Consortium: Deutsche Hypo, Bayerische Versorgungskammer and BNP Paribas REIM
The shareholders of the Leipziger Platz Quartier, a joint venture between High Gain House Investments/Berlin (HGHI) and Arab Investments/London (AIL), have successfully concluded the long-term end financing for the largest inner-city shopping centre project in Europe. Deutsche Hypothekenbank, Bayerische Versorgungskammer (BVK) and BNP Paribas REIM Germany combine forces to provide the financing. The consortium leader and agent for the transaction is Deutsche Hypo. The ten year financing volume totals € 600 million. BVK will assume € 450 million, Deutsche Hypo € 80 million and the two credit funds of BNP Paribas REIM Germany will account for € 70 million. This involves one of the largest real estate financing deals ever concluded in Germany, primarily executed by non-banks, and one of the largest amounts of financing by an institutional investor in Germany.
The shopping centre “Mall of Berlin”, which will cover roughly 80,000 square metres of retail space and have more than 270 retail and restaurant businesses, is expected to open its doors to customers on 25 September 2014. In addition to the retail space, 30,000 square metres of residential housing is planned in the Leipziger Platz Quartier. The centre is located in the top location of Berlin-Mitte, between the Reichstag, Friedrichstraße and Potsdam Square. The place was once the headquarters of the largest department store in Europe (Wertheim), which was destroyed in the Second World War, however.
On the business side, the financing transaction was supported and negotiated by Primor Capital Partners. In terms of legal matters, the lenders were advised by the business law firm Noerr LLP and the borrowers were advised by GÖRG mbB, a partnership of attorneys.
“We are pleased to have completed this challenging structuring – particularly in a deal of this magnitude. This underscores the innovativeness and the ability of Deutsche Hypo to execute significant transactions by including various financing partners,” explained Andreas Pohl, Speaker of the Board of Managing Directors of Deutsche Hypo. The financing takes place within the framework of strategic collaboration, which Deutsche Hypo and Bayerische Versorgungskammer agreed to in the autumn of last year. “I am convinced that in a very short time the Leipziger Platz Quartier will develop into one of the leading centres in Berlin.”
“We are especially pleased that Bayerische Versorgungskammer could initiate this large financing project and we have successfully worked with our consortium partners Deutsche Hypo and BNP Paribas REIM Germany to beat out our competitors. We are proud to provide the majority of the credit volume, with € 450 million, in this significant financing project” said André Heimrich, Member of the Board of Managing Directors and Head of the Capital Assets Department. “This project let Bayerische Versorgungskammer once again prove its sophisticated expertise and great skills in impressive fashion. The arranged collaboration with Deutsche Hypo also serves as a successful example for future projects. The expertise at Bayerische Versorgungskammer will allow us to finance large real estate projects in the future.”
With BNP Paribas REIM Germany assuming an € 70 million share for its two debt funds, the Munich-based funds succeeded in making the largest debt acquisition that a German debt funds has ever made. “This large-volume financing is another important step toward establishing debt funds in Germany and underscores our market leadership in this area,” stressed Reinhard Mattern, Chairman of the Management Board of BNP Paribas REIM Germany. “The role of non-banks in real estate financing will continue to grow in our opinion.”
A chart is appended (Source: HGHI).
About Arab Investments Ltd.
The London-based family office of the Affara family has been doing business in the real estate industry since the end of the 1970s and has also been active in Germany since 2006. In recent years – not including the Leipzig Square shopping centre – it has acquired real estate for over € 1.6 billion in Germany alone. Arab Investments is represented in Germany by Primor Capital Partners.
Contact Oliver Schinkewitz Phone: +49 (0)30 200 74 58-0 // email@example.com // www.primor.de
About High Gain House Investments GmbH (HGHI)
The Berlin-based family business of the Huth family is particularly specialized in the development of shopping centres and on properties with a large proportion of retail and is mainly active on the Berlin market. HGHI has an expert team of specialists in all areas relevant for real estate. It guarantees first-class service and competent consulting from the initial idea to sustainable management. HGHI’s specialists in design, urban planning, market research, location analysis, transaction questions, property issues, construction law and property access lay the foundation for future success in real estate during the development of new projects.
Contact Dr. Harald G. Huth firstname.lastname@example.org // www.hghi.de
About Deutsche Hypo
Deutsche Hypothekenbank (Actien-Gesellschaft) is a Pfandbrief bank that specialises in the financing of commercial real estate and capital market business with German and foreign customers. It is a part of the NORD/LB Group and is its centre of competence for the commercial real estate finance business, one of NORD/LB’s core business areas. Deutsche Hypo, which was formed in 1872, does business in Germany, Great Britain, France, in the Benelux countries and Poland. It has its headquarters in Hanover and is also present in Hamburg, Frankfurt, Munich as well as Amsterdam, London, Paris and Warsaw. Deutsche Hypo has roughly 400 employees and total assets of € 31.3 billion, making it one of the largest German real estate financiers.
Contact Carsten Dickhut Phone: +49 (0)511 3045-580 // email@example.com // deutsche-hypo.de
About Bayerische Versorgungskammer
Bayerische Versorgungskammer is the largest public sector pension fund group in Germany and a service and expertise centre for professional and municipal retirement pensions. As the top agency in the Department of the Bavarian State Ministry of the Interior, it jointly conducts the business of twelve legally independent professional and municipal pension funds with a total of approx. 1.9 million insured people and roughly € 4 billion per year in received contributions and allocations and roughly € 2.6 billion in annual pension payments. It manages a capital asset volume of roughly € 59 billion for all institutions together. Bayerische Versorgungskammer has roughly 1,200 employees and has been a signatory of the Diversity Charter of German Companies since March 2010 and a signatory of the UNPRI guidelines since 2011.
Contact Dr. Maike Kolbeck Phone: +49 (0)89 9235-7062 // firstname.lastname@example.org // www.versorgungskammer.de
About BNP Paribas Real Estate Investment Management Germany
BNP Paribas REIM Germany is one of the leading capital management companies for real estate special funds in Germany. Its business operations consist of the management and administration of real estate funds and real estate debt funds for institutional investors. With real estate special funds according to the German Capital Investment Code (KAGB) and the Luxembourg Asset Vehicles (Luxemburger Anlagevehikel) as well as SICAV solutions, the company is invested in top quality real estate in 14 countries in Europe and Asia. In total, BNP Paribas REIM Germany currently manages roughly € 4.3 billion, of which € 4.0 billion are divided across eleven special funds and two Luxembourg vehicles for institutional investors. BNP Paribas REIM Germany has set up two real estate debt funds according to the German Capital Investment Code (KAGB). Both funds invest in debt where the loans primarily involve real estate in Germany, but also properties in the Eurozone. For institutional investors, real estate debt funds are very attractive as higher returning alternatives to direct real estate investments or special real estate funds, because from a regulatory point of view they allow for a more effective deployment of capital.
Contact Daniela Panhoff Phone : +49 (0)89 12 17 31 54 // email@example.com // www.bnpparibas.com
About Primor Capital Partners
Primor Capital Partners is an owner-managed and independent equity investment company doing business with internationally operating family offices, primarily in the Middle East and the UK, as well as capital investments for project developments in Germany. Other important areas of the company include active real estate asset management, the structuring of financing and Islamic banking. The London-based family office Arab Investments Ltd. is represented in Germany exclusively by Primor. You will find additional information under www.primor.de and www.primor-asset.de
Contact Oliver Schinkewitz Phone: +49 (0)30 200 74 58-0 // firstname.lastname@example.org // www.primor.de
GÖRG is a leading independent business law firm in Germany. It has 280 lawyers at six locations in Berlin, Essen, Frankfurt am Main, Hamburg, Cologne and Munich, providing legal advice in all core areas of business law as an independent body. GÖRG holds other leading positions such as insolvency, restructuring and energy law as well as a top position in real estate law with a strong focus on large-scale real estate transactions, including real estate financing, making it one of the top 20 firms overall.
Contact Daniel Seibt Phone : +49 (0)30 884 503-109 // email@example.com // www.goerg.de
Noerr is one of the leading European business firms with 500 professionals in Germany, Europe and the US. It offers solutions for complex and challenging legal issues, creating real added value for its clients. The special thing about Noerr is the combination of broad professional excellence, innovative thinking, international experience and industry expertise. Together with our tax advisers, auditors and business consultants, we also develop sustainable and value-added solutions for financing and management. In the real estate sector, Noerr’s interdisciplinary Real Estate Investment Group (REIG) is among the leading advisers for transactions and financing. The group provides integrated advisory services on all aspects of real estate and bundles know-how from the areas of real estate law, financing, private equity, capital markets, company law, taxes and public sector law.
Contact Andreas Naujoks Phone: +49 (0)69 971477380 // firstname.lastname@example.org // www.noerr.com