On March, 16, 2018, AB European Real Estate Fund, Arab Bank (Switzerland) Ltd.’s flagship fund, successfully secured a €47.4 million financing for a cross-country logistics portfolio of 5 assets through a loan provided by a renowned multinational finance and insurance corporation.
The proceeds of these loans have been used to refinance the portfolio and finance a recent acquisition in the Netherlands. This will also provide fresh capital for the value enhancing asset management initiatives that the Fund is currently undertaking across Europe.
As a result of this new financing, the debt profile of the fund will be more flexible and will benefit from a lower amortization rate of 150 bps, down from 500 bps with the previously-held credit loan, along with an attractive fixed rate of 3.279% with a 5 year maturity.
Alain Dargham, CIO at Arab Bank (Switzerland) Ltd. said: “I am delighted to announce the successful outcome of the negotiation regarding this new loan facility. The longer tenure and additional funding will give our European commercial Real Estate Fund further flexibility on assets purchase, allowing further growth in our portfolio.”
Daniel Deléchat, Head of Asset Management, and Anne-Lorraine de Malliard, Real Estate Specialist, commented: “We believe that the strength of our model enabled us to obtain enhanced financing conditions that optimize the funds` performance, and underscores the trust banks have in our operation and growth strategy.”