M&G Investments has provided a €110 million senior commercial mortgage financing to an unnamed Dutch sponsor for the acquisition of a portfolio of residential units and several commercial properties, as announced in a statement Tuesday.
The loan has a term of ten years, represents leverage of 65 percent loan to value and is part fixed and part floating rate, allowing the borrower a high degree of flexibility, M&G said.
It’s believed the transaction is the first non-bank transaction of its kind in the Dutch market and the largest acquisition financing of Dutch residential property since the financial crisis, M&G said.
M&G has been actively lending against property in the UK and Germany in recent years but this is the first time the group has invested in the Netherlands, Paul Dittman, head of senior mortgages at M&G Investments said.
“This good quality portfolio being bought by a Dutch sponsor was the right transaction for us to enter the Dutch market with this senior mortgage financing loan,” Dittman said. “The Dutch market, both in the commercial as in the residential area, has had a difficult period and fundamental problems but, for investors such as M&G with good resources and client capital to deploy, there will always be relative value opportunities.”
The financing is secured against the portfolio of 1,250 residential units in the Netherlands plus several commercial properties. The Dutch sponsor, the name of which was undisclosed, acquired the portfolio from several vendors. The portfolio is comprised of a 2008 apartment complex in Amsterdam – the largest property in the portfolio – and properties in Groningen, Heerenveen and Rotterdam.
Earlier this year M&G financed two European shopping centres: the Jervis Shopping Centre in Dublin and Puerto Venecia in Zaragoza, Spain.