Mall of Berlin Sets New Standards for German Retail and Financing
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Volume 7, Issue 124, August 31st 2014 Mall of Berlin sets new standards Inside REFIRE for German retail and financing REFIRE is a specialised report focused on providing market intelligence and back- After a number of delayed starts, it looks like Europe’s biggest urban shopping ground analysis to finance professionals development, the Mall of Berlin, is all set to open on the 25th September in the in German and continental European real city’s historic Leipziger Platz in Berlin-Mitte, between the Reichstag, Friedrich- estate investment. strasse and Potsdamer Platz. It is certain to set new standards in many respects – its sheer scope and size, its innovative approach to reconstructing a whole city Whatever your particular area of speciali- quarter rather than just bundling the usual retail suspects under one giant roof, sation, we think you’ll find timely, incisive and the selection of retailers themselves, many of whom would not traditionally information within our pages, helping to in- be drawn to German cities’ downtown shopping centres. form you of the key deals, the numbers, the markets, the players and the people. The financing of the giant project Resurgence in M&A market has also broken a number of records, helps Lone Star shed DüssHyp The areas we focus on are: and set a new standard for the ability of US private equity investor Lone Star developers to realise massive projects has sold its second German real estate US Funds in Europe without the traditional reliance on typi- financing bank, Düsseldorfer Hypothek- European REITs cal bank lenders as the primary financial enbank (DüssHyp) to a consortium for an German Real Estate Finance providers. undisclosed price. The deal follows on German Non-Performing Loans (NPLs) Deutsche Hypothekenbank, the the heels of its sale of Corealcredit Bank Retail Property Funds Bayerische Versorgungskammer in Frankfurt to neighbouring see page 3 Mortgage Securitisation (BVK) and BNP Paribas Real Estate CMBS/RMBS REIM are providing €600m in long-term JLL wins Hatfield Philips Privatisations financing for the Mall of Berlin project, mandate for €300m+ German Refinancing a consortium owned by High Gain retail portfolio Euro-zone Property Financing House, the vehicle of prominent devel- It’s been a busy but very fruitful period for oper Harald Huth, and his 30% partner special real estate loan servicer Hatfield REFIRE has an extensive network of con- the London-based Arab Investments, Philips (HPI). Following on from a com- tacts in the field of continental European controlled by the Affara family office. plex restructuring process related to its real-estate finance, which enables us to The deal was arranged by Berlin-based Talisman 6 CMBS, which we reported on bring you the latest and most relevant news. Primor Capital Partners, with law firm in an earlier issue of REFIRE. see page 5 However, we always want to know more Noerr acting for the lenders and GÖRG about what’s going on in this dynamic sec- Partnerschaft von Rechstsanwälten IVG Immobilien to sell off tor, so make sure your company is keeping representing the borrowers. The Squaire, Silberturm us informed of your moves. Send your me- The Bavarian occupational pen- The Bonn-based IVG Immobilien AG, un- dia communications to news@refire-online. sion fund BVK is putting up the lion’s til recently Germany’s largest real estate com for our consideration. share of the loan at €450m, while Han- company until it filed for insolvency last nover-based Deutsche Hypo is lend- year is back in the news over reports that ing €80m as consortium leader and it is selling two of the Frankfurt properties CONTENTS in this Issue: agent, and two debt funds managed with which it is now most closely associat- by BNP Paribas REIM are putting up ed - The Squaire and Silberturm see page 8 DEALS ROUNDUP / from page 3 the remaining €70m. The loans are for EDITORIAL / page 4 10 years, with BVK’s lending ranked as Asian hotel groups discover REPORT - /ROUNDUP page 10 senior, the BNP loans as subordinate, German market UPCOMING EVENTS / page 29 and Deutsche Hypo’s spread across With Asian investors becoming increas- PEOPLE…JOBS…MOVES / the other two. ingly active on the German market, one SUBSCRIPTION FORM / page 34 The deal ranks as one of the big- area which can expect to start seeing a lot gest-ever German real estate financ- more interest is the hotel sector. Most ho- ings not principally provided by a bank tel groups have already made see page 12 2 lender, and certainly one of the biggest non-bank lenders in property financing REFIRE loans ever provided by a German insti- will grow further.” Real Estate Finance tutional investor, BVK. The spectacular Mall of Berlin at Intelligence Report Europe The financing partnership is part of Leipziger Platz, on the location of the the strategic co-operation between famous Wertheim department store Deutsche Hypo and which was destroyed Operating Office Germany’s biggest in the war, will have REFIRE “BVK separate- Habsburgerallee 95 pension fund manager ly confirmed that it 80,000 sqm of letta- 60385 Frankfurt am Main, GERMANY BVK which was agreed is looking at several ble retail space when Tel: +49-69-49085-785 upon last autumn, and it opens, with more Fax: +49-69-49085-804 new projects, some in Email: [email protected] which we reported on the residential sector, than 270 retail and in these pages. Accord- which it plans to be- gastronomy tenants, Managing Editor: ing to André Heimrich, along with 30,000 Charles Kingston come more involved in, Tel: +49-69-49085-785 board member and both as a lender within sqm of residential Fax: +49-69-49085-804 head of investments at a consortium, as well space. Along with a Cell: +49-172-8572249 the €60bn BVK, “Our 12,000 sqm hotel, a Email: [email protected] as on its own.” agreed collaboration further 50 stores will Subscriptions: with Deutsche Hypo for projects like be opened in an adjoining building next Tel: +49-69-49085-785 this can serve as an excellent example year, while the residential area is ex- Fax: +49-69-49085-804 Email: [email protected] for future projects, while with the possi- pected to include the completion of 250 bilities open to us as a financier, we will top-quality apartments, also by early Advertising: certainly be looking to finance further next year. Tel: +49-69-49085-785 Fax: +49-69-49085-804 big projects.” The new centre (pictured, left) will be Email: [email protected] BVK has already financed several the largest in Berlin in terms of shops and major German transactions over the tenants, although not actually in terms Editorial Advisory Board: Klaus H. Hausen past two years, including the Silber- of lettable retail space. That honour Colm O’Cleirigh, B.Arch.Sci. turm in Frankfurt (the belongs to the Gropius Margarete May, Rechtsanwältin ex-Dresdner Bank Passagen in Berlin’s David Scrimgeour, MBE Christian Graf von Wedel headquarters, now Neukölln neighbour- Glenn J. Day FRICS leased to Deutsche hood, another project Andreas Lehner Bundesbahn) and of Harald Huth’s which Stefan Engberg, MRICS Tower 185 in the was completed in the Publisher: Frankfurt business late ‘90’s and current- REFIRE Ltd., district, developed ly has 85,000 sqm of 49 Sandymount Avenue, Ballsbridge by CA Immo. BVK retail space. Huth sub- Dublin 4, Ireland separately con- sequently also com- firmed that it is looking at several new pleted another huge mall, the Schloss Real Estate Finance Intelligence Report Europe projects, some in the residential sector, in Berlin’s Steglitz neighbourhood. The (REFIRE) is published 22 times a year, at the be- ginning and in the middle of each month, with which it plans to become more involved opening hours in the Mall of Berlin will two holiday breaks. REFIRE is editorially inde- in, both as a lender within a consortium, be the longest in Berlin, however, with pendent of any selling or investing institutions. In- as well as on its own. tenants required to keep their stores formation contained in REFIRE is under copyright protection and is based on sources believed to The €70m tranche from BNP Parib- open from 09.00 to 22.00, rather than be reliable, though their complete accuracy can- as REIM funds is the largest financing until 21.00 as is normal in Berlin’s other not be fully guaranteed. Neither the information ever granted by German debt funds. big shopping centres. contained in REFIRE nor the opinions expressed therein constitute or are to be construed as con- “This large-volume financing is a further Deutsche Hypo is the proper- stituting an offer or solicitation of an offer to buy important step towards establishing ty financing division of north German or sell investments. REFIRE accepts no liability debt funds in Germany and underlines landesbank NORD/LB. Active in Ger- for actions based on the information herein. our market leadership in the area,” said many, UK, France, Benelux and Poland © 2014 REFIRE Ltd. BNP REIM chairman Reinhard Mat- it has a balance sheet of €31.3bn. Ba- tern. “We are convinced that the role of varian BVK manages a total investment 3 www.refire-online.com ................................................. DEALS ROUNDUP volume of €59bn. BNP Paribas REIM The buyer is a consortium headed ing bank specialising in financing resi- Germany, part of the French banking by London investment group Attestor dential properties, offices, hotels, logis- group, specialises in property Special Capital LLP and investment banker tics and parking with mortgage small Funds and Luxembourg SICAV solu- Dr. Patrick Bettscheider. The new bond loans in the region of €10-50m.