Mall of Berlin obtains €600m finance deal

Shareholders have been successful in finalizing financing of €600m for the largest shopping mall project in Europe.

To offer this financing, BNP Paribas REIM Germany, Bayerische Versorgungskammer (BVK) and Deutsche Hypothekenbank joined forces.  The agent and consortium leader for this transaction is Deutsche Hypo.  The financing will be split into BVK offering €450m, Deutsche Hypo €80m and BNP Paribas REIM Germany €70m.  This is one of the biggest real estate financing projects ever realized in Germany which has primarily been offered by non-banks, as well as one of the largest financing by a German institutional investor.

The mall will cover retail space of about 80000m² and offer shoppers in excess of 270 restaurant and retail concerns.  It is due to open to shoppers on 25 September 2014.  Its plans include residential housing of around 30000m² in the Leipziger Plaz Quartier.  The mall can be found between the Potsdam Square, Friedrichstrasse and Reichstag.

The transaction for the finance was negotiated by Primor Capital Partners and the legal issues for the lenders were handled by Noerr LLP, and the borrowers received legal advice from GORG MbB. The €70m share assumed by BNP Paribas REIM Germany has resulted in it gaining success in offering the largest debt acquisition by a German debt fund.  They have stated that this volume of financing is a huge step toward the establishment of debt funds in the country and has placed a stamp on their market leadership in this arena.  According to the fund, the task of non-banks in financing for real estate is set to continue its growth.