Hillwood’s EU Industrial Club III has announced the successful closure of a EUR 368.19 million loan with Aareal Bank AG.
The refinancing relates to Hillwood’s extensive EU Club III portfolio of Class A logistics properties, consisting of five assets in Germany and 13 in Poland. The investment loan is structured to be split into two tranches, with EUR 303.43 million available immediately, on day one, and an additional EUR 64.76 million reserved for future developments, acceding upon completion.
The loan includes an investment facility for 14 operational assets and additional funding for four projects on which construction is scheduled to commence in 2025. The deal also provides for a potential increase to EUR 500 million of total borrowings to support further logistics developments.
“We’re delighted to have reached agreement with Aareal Bank on a strategic investment plan that supports our vision for the future and facilitates the further expansion of our business in Poland and Germany,” said Hillwood Poland Vice President Tomasz Jaroszewski.
“We are excited to embark on our first transaction with Aareal Bank,” added Armin Senoner, Director (DE/UK) Debt Capital Markets, Hillwood, “marking a significant step in building a strong and reliable partnership.”
Severin Schoettmer, Managing Director Special Property Finance of Aareal Bank, said: “We are very happy to support Hillwood in growing its portfolio of modern, Class A logistics properties in Central Europe. With its assets built to BREEAM standards, we have every confidence that Hillwood’s ambitions align with our commitment to a sustainable future.”
Hillwood was advised by the Clifford Chance law firm, and Aareal Bank was advised by the DLA Piper law firm.