Wiesbaden, 10 December 2024 – Aareal Bank has successfully provided a £290 million senior loan to Redevco, a prominent Dutch retail investment company for the acquisition financing of a portfolio of 16 retail warehouses across the United Kingdom. This significant transaction represents one of the largest retail property transactions in the UK market in 2024.
This transaction marks Aareal Bank’s first engagement with Redevco, a real estate company of COFRA Holding AG, a privately held group of companies active in various business sectors.
The acquired portfolio assets are strategically located in core urban centres, primarily in southern England, featuring a diversified tenant lineup of both national and international retailers. A substantial part of the portfolio's in-place rent is secured by prominent food retailers, serving as a robust anchor that bolsters its resilience against the challenges posed by the rise of e-commerce.
Redevco acquired the portfolio through a share deal transaction from Oxford Properties and M7 Real Estate to enhance its position in the UK. The off-market transaction aligns with the company’s goals to strengthen its portfolio and capitalize on future growth opportunities in the retail sector.
“Our first financing with Redevco, a leading European retail investor, is setting a benchmark for the industry,” says Severin Schoettmer, Managing Director Special Property Finance at Aareal Bank. “This transaction, one of the largest retail deals in the UK in 2024, highlights our ambition and commitment to financing prime retail transactions with top players across Europe and beyond.”
Manolito van Ardenne, CFO of Redevco adds: “Partnering with Aareal Bank enhances our UK portfolio in resilient retail segments, aligning with shifting consumer preferences shaped by e-commerce trends. This acquisition, bringing our pan-European retail parks platform’s gross asset value to circa €5 billion, represents a robust cash flow which we expect to increase to a yield north of 6.5% once live asset management initiatives complete."
Aareal Bank acted as the arranger, facility agent, and security agent for this transaction.
Eastdil Secured served as the exclusive financial advisor for this transaction. The legal advisory roles were taken on by Pinsent Masons for Aareal Bank and CMS for Redevco, Knight Frank provided valuation services to Aareal Bank.
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