In May, the Czech development and investment group Crestyl concluded an investment loan agreement with a consortium of German banks pbb Deutsche Pfandbriefbank (pbb) and Helaba, and at the same time drew funds in the amount of EUR 130 million (over CZK 3.3 billion). Each of the foreign banks contributes exactly half of the investment loan. The investment loan was used to refinance existing bank loans of the already completed office part of the Prague DOCK project – this includes four DOCK IN buildings with a total leasable area of over 58,000 sqm.
“Our unique DOCK project has matured to the point where it is necessary to look at it as a whole and not separately at its individual stages,” says Přemysl Hubrt, CFO of the Crestyl Group. “Refinancing with foreign partners was a strategic decision for us, which gives us free hands to finance our other development projects with Czech banks, with which we have long-term mutual cooperation in this area. The transaction is unique to the Crestyl Group in that it is the largest transaction with a consortium of foreign banks, which we have laid a strong basis for further cooperation in the future. ”
The aim of the refinancing was, in addition to freeing up funds for the possibility of financing other projects with existing Czech banking partners, also an overall reduction in debt service and administrative burdens. Until now, a separate loan was provided for each of the buildings at different banks, now everything has been merged. On Crestyl’s side, Dentons’ lawyers were involved in preparing the transaction.
“DOCK IN is a popular Class A project and we are very happy to be able to support Crestyl in refinancing together with colleagues from Helaby. This transaction underscores our continued strong interest in the real estate markets in Central and Eastern Europe, especially in the office markets in key cities, ”says Charles Balch, Head of International Clientele for the UK, Central and Eastern Europe and the US at pbb Deutsche Pfandbriefbank.
“With the DOCK project, Crestyl has created an amazing mix of living, working and leisure time. This flagship is the benchmark for future construction, where people feel comfortable, both at work and out of the office. At Helaba, we are very pleased to be able to finance this exceptional Crestyl Group project together with pbb. Although times are tough, together with good partners, it can be done, ”says Martin Erbe, Head of Real Estate Finance for International Clients for Germany, Central and Eastern Europe and the Benelux at Helaba.
The DOCK district, growing around the two blind branches of the Vltava in Prague’s Liben, has been practically completed, and the last, fifth building is currently under construction – the DOCK IN FIVE offices. The residential buildings are all completed and the apartments are sold out. Similarly, all completed office buildings are fully occupied by tenants except for the last few meters. Completion of the last DOCK IN FIVE office building is scheduled for the second half of 2022. It will offer approximately 21.5 thousand m2 of office space and retail space. The total floor area of the DOCK IN commercial complex is approximately 80,000 m2. DOCK IN offices have attracted a number of major companies such as Saint-Gobain, Dame Food, BNP Paribas Cardif Insurance, ASSA ABLOY, LEGO Trading, Publicis, Henkel and Hornbach.
