Canadian real estate investment trust acquires 420 million euro office portfolio with funding from four independent banks
Berlin, March 15, 2013 Olswang advised long-standing client Dundee International REIT on the 257 million euro funding for the acquisition of SEB Asset Management's 420 million euro office portfolio. The special aspect of the debt financing was the split of the portfolio into four independent clusters being funded separately through borrowing from four different German mortgage banks. The different loans provided by Aareal Bank, DGHyp, Münchener Hyp and Bayern LB were negotiated in parallel and independently, but all closed at the same time in order to achieve the acquisition of the entire portfolio.
Claudia Hard, Partner at Olswang, commented: "We successfully coordinated a large team of lawyers to work with four financial institutions simultaneously on the portfolio financing for 11 sites in Germany. Advising on such a complex financing structure in such a short period of time was challenging but also a very rewarding experience for the teams involved."
Except for Aareal Bank, all other financial institutions had supported Dundee in previous acquisitions.
Background:
Olswang has acted for Dundee International REIT since their entry in the German market in 2011. After having completed 20 acquisitions in just twelve months, Dundee instructed Olswang to assist the real estate investment trust in their acquisition from SEB Asset Management of an office portfolio with sites across Germany for the value of 420 million euro. Prior to this transaction, Olswang had acted for Dundee in the purchase of commercial property "doubleU" in Düsseldorf and of the Head Quarters of Ergo Direkt Versicherung in Nürnberg.