HAMBURG/KIEL – HSH Nordbank has successfully refinanced a portfolio of four shopping centers, located in Germany, for a joint venture led by Madison International Realty, in partnership with the Redos Group. The existing loan on the property at the time of the “Christie portfolio” acquisition was assumed by Madison and is now being replaced by HSH Nordbank. The portfolio was acquired near the end of 2016. The loan amount was not disclosed.
Three of the four large-scale shopping centers are located in the metropolitan area of Berlin, the remaining shopping center is located south of Dresden. Some of the assets, built between 1992 and 1996 and comprising a total net leasable area of approximately 216,000 sqm, have been revitalised by project developer HLG. Kaufland is the long-term anchor tenant for each centre. Other major tenants include C & A, Deichmann, Douglas Parfümerie, H & M, Media Markt and Rossmann. Small and medium retailers round off the mix. Moreover, the shopping centers have good transport links and provide entertainment and a range of eatery options.
Madison focuses on capital partner replacements, equity monetisations and recapitalisations of Class A properties and portfolios located through the US, UK and Western Europe, as well as investments in both public and private companies owning similar quality assets. Madison has over $3.2 billion of assets under management, having raised funds from more than 150 institutional investors. “The shopping centers not only offer a wide range of consumer products, but also entertainment and restaurants. This tenant mix makes these ‘hybrid centers’ particularly attractive for visitors,” said Matthias Cordier, Head of German Investment at Madison. “We are delighted to have refinanced the portfolio with HSH Nordbank. The team at HSH Nordbank knows the assets, and structured this complex and large-scale financing efficiently and with aplomb.”
Oliver Herrmann, Managing Director and Head of Business Development at Hamburg-based asset and investment manager redos real estate GmbH, said: “In the wake of the revitalisation, extensive investments have been made in the properties. The modernisation of Kaufpark Eiche near Berlin alone saw more than EUR 50 million being spent on retail spaces, a food court and the redesign of the exterior area with events areas and a playground.”
“The shopping centers, which have been very well established in the market for many years, were redeveloped and adapted to the needs of the visitors and to current shopping trends. The fact that this concept works is also reflected in the above-average sales and occupancy rates,” said Peter Axmann, Head of Real Estate at HSH Nordbank. “We support the renowned and globally active Madison Group with this newly structured financing once again in its commitment to the German real estate market.” For this transaction, HSH Nordbank was advised by Taylor Wessing and Madison by Freshfields.