£90m refinancing deal secured for retail park
Korea’s MDM Asset Management and Hana Securities have received a £90m debt facility for its Gallagher Shopping Park in Wednesbury.
Pbb Deutsche Pfandbriefbank, Aareal and AshbyCapital have jointly underwritten the three-year facility. It’s AshbyCapital’s debut in debt financing after setting up the platform to do so earlier this year. The firm said it will lend from its own balance sheet at fixed rates, targeting opportunities between £10m and £50m.
The 230,000 sq ft Gallagher retail park was acquired from KKR in 2018 by the Korean Real Estate Fund sponsored by MDM Asset Management and with Hana Securities as the principal LP. It’s managed by retail specialist Quadrant.
CBRE’s debt & structured finance team advised the Korean group on the refinancing.
Charles-Etienne Lawrence, investment director at AshbyCapital said: “Amidst more challenging market conditions than we have seen in recent years, a significant opportunity has presented itself in real estate debt, which is looking increasingly attractive due to revaluations and rising interest rates.
“Using our extensive knowledge of the real estate industry to source the best opportunities with high-quality sponsors, we are delighted to have made our debut with this three-year loan facility which will allow Hana Securities to work through the next stage of this high-performing asset’s lifecycle.
“Being in a sector that mirrors our equity investment expertise, we are confident in the security of this asset due to its strong fundamentals and resilient income, aided by Quadrant’s experienced asset management.”
A spokesperson from Hana Securities said: “The challenges we confront in global real estate markets today are multi-faceted, and there is downward pressure on asset values. For Hana Securities, the best strategy to protect our global investments is to be proactive by demonstrating resilience and trusting our partners to confidently navigate the challenges we face”.
Chris Gow, head of debt and structured finance at CBRE, which advised the borrower, said the refinancing attracted strong interest from lenders.
He said: “The robust performance of the asset and strong income generation recorded throughout the period of ownership resulted in several offers being brought forward and furthermore, we have been able to structure an attractive facility to ensure our client will benefit from future asset management potential.”
Christopher Daniel, founding partner at Quadrant, added: “Despite the retail headwinds the park has remained relevant and continues to attract both shoppers and retailer interest. We now look forward to working with our partners to continue to enhance the park over the coming years.”