WARSAW—Valad Europe, a leading diversified real estate investment manager, has completed a $421 million (€310M) refinancing of its Valad Polish Retail Fund through three new loan facilities.
Seven out of the nine assets owned by the fund were refinanced under a $230 million (€169M) term loan facility provided by ING Bank Slaski, who also acted as arranger, Alior Bank, Bank Zachodni WBK, Skandinaviska Enskilda Banken and Bank Millennium.
Centrum Janki shopping centre in Warsaw, which is about to undergo a $81.5 million (€60M) redevelopment, was refinanced under a million $110 million (€75M) loan facility provided by Berlin Hyp.
The Ursynow Shopping Centre in Warsaw was refinanced under a $90 million (€66m) loan facility provided by ING and BZ WBK.
The Valad Polish Retail Fund is a closed ended fund comprising six first generation shopping centres and three hypermarkets, totalling 300,000 sq m, located in seven of Poland’s key cities including Warsaw, Kraków and Wroclaw.
Fraser Kennedy, chief financial officer at Valad Europe.
“We are delighted to be working with our new lending partners at Berlin Hyp, Alior, BZ WBK and Bank Millennium, as well as continuing our relationships with ING and SEB,” Fraser Kennedy, chief financial officer at Valad Europe. “The Fund holds a strong portfolio and this is demonstrated by the lenders’ confidence in the assets against which the loans are secured and Valad Europe’s ability to manage those assets.”
Thierry Leleu, head of funds management, added: “We have worked hard to enhance the value of the Polish Retail Fund portfolio which has involved various asset management initiatives, including the $81.5 million (€60M) extension and refurbishment of Centrum Janki which will shortly get underway, the refurbishment of Szczecin Ster Shopping Centre and the refurbishment of the Rondo Shopping Centre in Bydgoszcz. With financing now secured for the next three years, we can continue with our efforts on actively managing the Fund’s assets to optimise returns for our investing partners.”
Valad Europe manages $5.4 billion (€4B) of assets in Europe across its funds and mandates, comprising 550 assets and 4,700 tenants, with the retail sector representing more than 20% of Valad Europe’s total assets under management. Valad has a team of more than 25 people working out of its Polish office in Warsaw.