The operation is part of the €395 million financing that LaFinca GA has obtained from a group of international financial entities, with Allianz as the main lender. This is the third real estate debt transaction closed by Allianz Real Estate in Spain and the first office loan on the Spanish market.
On behalf of several Allianz entities, Allianz Real Estate has closed the financing of €155 million in a facility provided to LaFinca GA, a real estate company whose main shareholders are Grupo LaFinca and the North American fund Värde.
This participation is part of a €395 million refinancing aimed at the renovation and improvement of its office assets, which has been granted by a consortium of financial entities, with Allianz as the largest participant. Société Générale has acted as global coordinator and agent in the transaction.
LaFinca GA's business comprises c. 230,000 square meters with a level of occupancy of more than 90%, leased to a range of highly reputable tenants, as well as 6,200 parking units accross Madrid. Its La Finca Business Park in Pozuelo, its Cardenal Marcelo Spinola Business Park and its Martínez Villergas Business Park stand out as its most emblatic assets, as well as other assets in the centre of Madrid.
In receiving this new long term fixed rate loan, LaFinca GA will be able to focus on managing and growing its existing portfolio while refinancing various older facilities.
"Having a partner like Allianz Real Estate, with a long-term vision and financial soundness, endorses our company and our ability to successfully manage our assets," commented Susana García Cereceda, Chairman at Grupo LaFinca and LaFinca GA.
For Allianz, this is the third direct real estate debt transaction in Spain after having financed several retail assets and participated in Pan-European portolio transactions with a number of assets in the country. Furthermore, this is its first office financing in Spain.
Allianz Real Estate, the strategic centre of the insurance company dedicated to real estate investment and asset management around the world, opened its office in Spain in the last quarter of 2016 to further develop its activity on direct and indirect investments and lending.
Its Head for Iberia, Miguel Torres, commented: "For Allianz Real Estate this is the third real estate debt transaction in Spain, helping to consolidate our position in this local market." Moreover, he pointed that "Grupo LaFinca has demonstrated over more than 40 years of experience its capacity to develop high quality offices endowed with the conditions demanded by the companies of today, so we are fully confident in the value of our investment, and we hope to expand our relationship with them in the long term."