AEW/Ostrum AM Invest €64m in German Residential Property
AEW and Ostrum AM, affiliates of Natixis Investment Managers, have provided €64m in debt to finance the purchase of 4,751 residential property units in Germany.
The debt platform operated by AEW and Ostrum AM provided the funds as part of a €166.5m senior mortgage facility to back the purchase of the property portfolio in the German state of North Rhine Westphalia. The first ranking mortgage facility, accompanied by a robust security package, has a five-year maturity.
The residential units, located primarily in Duisburg, Essen, Marl and Werdohl, are 89% occupied and provide diversified cashflows. The capital expenditure plans of the sponsor ensure that the properties also have upside valuation potential. The sponsor is a long-term investor in the German residential market, with more than 13,500 residential units already under management, worth a total of around €5bn. It intends to improve the new portfolio with €7Mn in capital expenditure over the next five years to increase the occupancy rate to 97%.
Cyril Hoyaux, co-head of the AEW/Ostrum real estate debt platform, says: “We liked the deal because we could see the track record of the sponsor in managing similar assets.”
Arnaud Heck, co-head of the AEW/Ostrum real estate debt platform, says AEW/Ostrum was part of the deal from its conception and agreed to share the debt facility with the arranging bank. “This deal took time to execute, but it has gone to plan and we are happy with the sponsor’s plans for capex and return on investment,” says Heck. “This is our third recent transaction in residential property - we think this property segment is particularly robust in difficult times and also has upside potential.”
Sources: AEW/Ostrum AM as of August 2020
For further reading:
AEW
An affiliate of Natixis Investment Managers
Privately-held French "Société anonyme à conseil d’administration".
Real-estate investment manager under n°T 8324 delivered by the Prefecture de police de Paris.
Share capital: €17,025,900
RCS Paris: B 409 039 914
8-12 rue des Pirogues de Bercy 75012 Paris, France
www.aew.com
Ostrum Asset Management
An affiliate of Natixis Investment Managers
French Public Limited liability company with board of Directors
Share capital €27 772 359
Regulated by the Autorité des Marchés Financiers (AMF) under no. GP 18000014
RCS Paris n° 525 192 753
43 avenue Pierre Mendès France 75013 Paris, France
www.ostrum.com
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
75013 Paris
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.
The debt platform operated by AEW and Ostrum AM provided the funds as part of a €166.5m senior mortgage facility to back the purchase of the property portfolio in the German state of North Rhine Westphalia. The first ranking mortgage facility, accompanied by a robust security package, has a five-year maturity.
The residential units, located primarily in Duisburg, Essen, Marl and Werdohl, are 89% occupied and provide diversified cashflows. The capital expenditure plans of the sponsor ensure that the properties also have upside valuation potential. The sponsor is a long-term investor in the German residential market, with more than 13,500 residential units already under management, worth a total of around €5bn. It intends to improve the new portfolio with €7Mn in capital expenditure over the next five years to increase the occupancy rate to 97%.
Cyril Hoyaux, co-head of the AEW/Ostrum real estate debt platform, says: “We liked the deal because we could see the track record of the sponsor in managing similar assets.”
Arnaud Heck, co-head of the AEW/Ostrum real estate debt platform, says AEW/Ostrum was part of the deal from its conception and agreed to share the debt facility with the arranging bank. “This deal took time to execute, but it has gone to plan and we are happy with the sponsor’s plans for capex and return on investment,” says Heck. “This is our third recent transaction in residential property - we think this property segment is particularly robust in difficult times and also has upside potential.”
Sources: AEW/Ostrum AM as of August 2020
For further reading:
- Covid-19: What is the impact on Commercial Real Estate Debt in Europe?
- AEW and Ostrum Asset Management complete final investments in Senior European Loan Fund II (SELF II)
- Bricks, Mortar and Loans
- Real Estate Debt is the Real Deal
An affiliate of Natixis Investment Managers
Privately-held French "Société anonyme à conseil d’administration".
Real-estate investment manager under n°T 8324 delivered by the Prefecture de police de Paris.
Share capital: €17,025,900
RCS Paris: B 409 039 914
8-12 rue des Pirogues de Bercy 75012 Paris, France
www.aew.com
Ostrum Asset Management
An affiliate of Natixis Investment Managers
French Public Limited liability company with board of Directors
Share capital €27 772 359
Regulated by the Autorité des Marchés Financiers (AMF) under no. GP 18000014
RCS Paris n° 525 192 753
43 avenue Pierre Mendès France 75013 Paris, France
www.ostrum.com
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
75013 Paris
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.