Deutsche Pfandbriefbank ploughs €40m into closed real estate fund

pbb Deutsche Pfandbriefbank were behind €40m of the €100m investment received by closed real estate fund DCSF Immobilien Verwaltungsgesellschaft Nr. 4 mbH & Co. Objekt Stuttgart-Vaihingen KG, representatives have revealed.

The remaining €60m allocated to the facility was offered by an as-yet unnamed banking corporation in a deal that closed in December 2012, with the aim of refinancing commercial properties ‘SchwabenGalerie’ and ‘Daimler Global Training Center’ in Stuttgart-Vaihingen.

A shopping mall covering approximately 40,000m2, SchwabenGalerie has around 23,000 m² of dedicated retail space, servicing tenants including Kaufland, Media Markt, Aldi Süd, dm Drogeriemarkt, Deichmann Schuhe and Takko Fashion.

The other 17,000m2 has been allocated to office space and storage facilities, as well as a luxurious 4-star hotel and public access Bürgerzentrum – the German equivalent of a Citizens’ Advice Bureau.

The Daimler Global Training Center – a commercial complex completed in 2004 – is comprised of 17,000m² of prime office space, training rooms and workshops. The fund behind the financing of the complex, Deutsche Fonds Holding AG, has been active in conceiving funding projects for both institutional and private investors since 1992.

Commenting on the initiative, head of Sales Deutschland at pbb Deutsche Pfandbriefbank, Gerhard Meitinger praised the model of signing real estate funds as customers for being an easier alternative to the traditional process.

He said: “The properties refinanced in this case are well-known properties with household name tenants. Within the framework of our sales activities in Germany, we intend to strengthen our strategy of signing up real estate funds as customers and intend to strengthen existing connections.”

The news caps a stellar 2012 for the German office space market, which performed far better than initially expected, with take up above the long-term average at 3.25m sq ft. As reported by Search Office Space in January, over 900,000 sq ft of space was taken in Q4 alone, with growth levels projected to be sustained throughout 2013.

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