Segro secured a total of €208m in short-term financing from three German lenders to further expand its Segro European Logistics Partnership platform, in which it has a 50-percent holding. Helaba, pbb Deutsche Pfandbriefbank (PBB) and Aareal Bank backed Segro in the acquisition of a substantial logistics portfolio, comprising of 14 assets located in Germany, France and Poland.
“We are very pleased to have had the opportunity to work with the existing SELP lending banks to put in place such cost-effective debt funding for our recent portfolio acquisition,” said Justin Read, Segro Group’s finance director. “These financings are consistent with SELP’s funding objective to enhance returns through low cost debt whilst maintaining a moderate level of financial leverage.”
The new debt provides a weighted average loan to value ratio of around 39 percent on the portfolio acquisition value and is structured as fixed-rate loans with a weighted average blended margin of 1.6 percent and a weighted average blended total cost of 2.2 percent per annum over the life of the facilities.
