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Deutsche Pfandbriefbank provides €235m financing in Europe

Deutsche Pfandbriefbank, the business formed in June out of a merger between Hypo Real Estate Bank and subsidiary Depfa Deutsche Pfandbriefbank, has provided European funds managed by Denver logistics giant ProLogis with financing to acquire new assets and refinance others.

Deutsche Pfandbriefbank has completed new investment financing of over €235 million for European funds managed by Denver-based logistics group, ProLogis.

The business formed in June out of a merger between Hypo Real Estate Bank and subsidiary Depfa Deutsche Pfandbriefbank, has provided a new €110 million investment financing facility for a portfolio of 17 distribution warehouses across Germany.

In addition, it has also provided a €126 million refinancing for a portfolio of 24 warehouses across Central and Eastern Europe. This refinancing extends the maturity of a previous secured bank loan, due to expire in March 2010, by three years.

The German warehouse portfolio consists of 17 assets built in 2007 and 2008 and is fully let to tenants with strong covenants, the bank said.

The warehouse portfolio in Central and Eastern Europe consists of 24 assets in Poland, Czech Republic and Hungary, with an average age of 6.5 years and is nearly fully let to international tenants.

It is the second refinancing announcement in the space of two weeks from Deutsche Pfandbriefbank.

On 30 July, the newly nationalised bank said it had provided a €40 million facility to UBS Wealth Management’s Global Property Fund.

Hypo was taken over by the German state bail-out entity SoFFin in June after it fell into financial difficulties.