A group of companies affiliated with Cerberus Capital Management LP secured a €72m loan from pbb Deutsche Pfandbriefbank. The money will be used to acquire a mortgage loan that Cerberus plans to turn into a long-term real estate loan. The loan agreements were signed in June. Cerberus wants to completely refurbish a portfolio of seven retail properties located in western and southern Germany.
“This complex financing clearly demonstrates pbb’s strong structuring skills. In a first step, the bank provided a loan, collateralized by a real estate lien, to purchase a maturing loan. In a second step, this loan will be converted into a long-term real estate financing,” said Gerhard Meitinger, head of Real Estate Finance Germany at pbb Deutsche Pfandbriefbank. “I am pleased that pbb was able to structure this facility for Cerberus, continuing our long-standing and successful business relationship.”
