MLP Group concluded a transaction of portfolio financing of projects with a consortium of Bank BNP Paribas and PKO Bank Polski, worth EUR 73.4 million.
Subsidiaries of MLP Group signed a portfolio loan agreement with a consortium of BNP Paribas Bank Polska and PKO Bank Polski, under which an investment loan of EUR 73.4 million (approximately PLN 330 million) was granted. The funds will be used to refinance the existing credit obligations of companies and, inter alia, to finance the Group’s current investment projects. Cooperation with banks will contribute to strengthening the financial stability of the MLP Group.
MLP Group has concluded a portfolio loan agreement with a consortium of two financial institutions. On the basis of this agreement, BNP Paribas Bank Polska and PKO Bank Polski will provide the leading warehouse developer with financing up to a total of EUR 73.4 million (approximately PLN 330 million). The signed contract is proof of the positive perception of the MLP Group’s warehouse property portfolio as well as the Group’s position and potential by the leading banks.
The funds from the loan will be allocated by MLP Group, among others to refinance previously contracted credit obligations. They will also be used to refinance the outlays planned to be incurred for the expansion of the MLP Wrocław logistics park in Mirków and additionally to finance investment projects of the MLP capital group by repaying subordinated loans to the MLP Group.
– We signed an important transaction of portfolio financing of MLP Group projects in a consortium with two banks: BNP Paribas Bank Polska and PKO BP. With the dynamically growing scale of operations, the optimization of financing is very important to us. Our goal is to build and maintain debt with a diversified structure allowing for flexible cost management. Concluding a loan agreement with two key banking institutions will contribute to strengthening our financial stability by acquiring a new source of financing and extending the maturity of the debt – said Monika Dobosz, CFO at MLP Group S.A.
I am glad that the financing provided by the consortium will provide MLP Group with stable support in the implementation of the company’s development plans. The warehouse sector currently looks good compared to other segments of the real estate market, and MLP Group is one of the leading entities implementing investments in this area. We decided to get involved in this transaction, seeing the potential of the sector, but also due to the great importance we attach to building long-term relationships with our clients. This is the next stage in the development of our cooperation with MLP Group. I would like to thank the company for its trust – emphasized Marek Kowalski, director of the Real Estate Finance Department at BNP Paribas Bank Polska.
PKO Bank Polski has been involved in the development of the warehouse and logistics sector in Poland for a long time, supporting market leaders with long-term financing. The investment financing provided to MLP Group as part of the consortium is an expression of our trust in the company’s business model. We are glad that we managed to implement another large project together – added Agata Gola, Director of Real Estate Financing at PKO Bank Polski.
At the end of last year, the Group had over 715 thousand. m2 of finished warehouse space. Taking into account also projects under construction and in preparation, it offered a total of 860 thousand. m2 of modern space. At the same time, MLP Group maintains a land bank within which the target area for development is nearly 1.29 million m2. Additionally, it has a number of reservation agreements for the purchase of new land for planned logistics parks in Poland (including Stryków, Pruszków, Poznań), Germany (including Gelsenkirchen, Cologne, Frankfurt am Main, Leipzig) and Austria.
The strategic goal of MLP Group is expansion in Poland and the German market, as well as development in Austria and Romania. City Logistics facilities (small modules offering modern warehouse space together with a representative office with a high standard of finish) and big-box facilities are becoming more and more popular. In line with the “build & hold” strategy, the MLP Group maintains them in its portfolio and manages them on its own after the construction of logistics parks is completed. All projects implemented by the Group are also distinguished by the very attractive location of logistics parks, the use of a built-to-suit solution and the support of the tenant during the term of the lease agreement.
