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TIAA Henderson Real Estate secures €67 million debt finance

TIAA Henderson Real Estate (TH Real Estate) has secured a new €67m debt financing on behalf of its European Outlet Mall Fund.

The five year facility, provided by Deutschepfandbriefbank (“PBB”), to refinance the existing indebtedness and release additional monies to undertake capex plans, was secured at an all-in cost of debt of c.2.3%. The debt has been secured against the Designer Outlet Berlin.

The refinancing comes shortly after the successful ten year “extension” of the c.€1.5bn flagship European Outlet Mall Fund which owns eight outlet mall assets across Europe, in addition to its indirect holding in three UK outlet mall assets.

Designer Outlet Berlin, located in the Berlin Brandenburg region on the western edge of Berlin, was acquired in two stages in 2006 and 2008 when the entire site was then redeveloped, with the latest phase opening in 2010. The centre totals c.21,000 sq m of GLA across 90 retail units and is anchored by Hugo Boss, Joop!, Strellson, Nike, Tommy Hilfiger and Adidas.

Sebastien Gorrec, Fund Manager at TH Real Estate, said "The successful refinancing and restructuring of external debt is an essential part of the medium-term strategy of the Fund, and provides the team with the foundations to deliver value adding asset management initiatives. The rate secured is testament to the confidence and strength of prime outlet mall centres across Europe. We work closely with our Treasury team and are benefiting from the excellent relationships that we have with a variety of lenders, across all of the various property funds at TIAA Henderson Real Estate."

Colin Throssell, Head of Treasury, added "The new financing we have arranged and executed is a great result for the Fund. The fact that we have further extended our relationship with a bank that understands the Fund and its assets offers great stability, whilst our ability to lock-in historically low finance costs for a five year period will aid the Fund in delivering strong returns to its investors. It gives us enormous confidence as the “first step” in finalising the other near term re-financing requirements of the Fund." 

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority.TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are
subject to change without notice.

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