Amsterdam, 25/04/19 – CBRE Global Investors has successfully completed a long-term refinancing for the CBRE Dutch Office Fund. PGIM Real Estate has arranged the 8-year, EUR 350mn Term Loan which was provided jointly by PGIM Real Estate and Rothesay Life (“Rothesay”) as co-lenders.
The loan is secured by the World Trade Centre Amsterdam, one of the assets that is part of the CBRE Dutch Office Fund, and unlocks additional capital for the continued investment and growth of the World Trade Centre, including the development of the ‘WTC Amsterdam Tower Ten’, which will comprise a large-scale redevelopment of 17,000 sqm of existing space and 32,000 sqm of newly built modern office space. After completion, WTC Amsterdam will consist of more than 160,000 sqm, facilitating more than 300 different companies. WTC Amsterdam forms the heart of the central business district of Amsterdam.
The refinancing builds on the existing financing relationship of CBRE Global Investors with PGIM Real Estate and facilitates Rothesay’s senior loan debut in the Netherlands.
The CBRE Dutch Office Fund is one of the largest Dutch non-listed office funds, managed by CBRE Global Investors, with approximately EUR 1.9bn AuM and has a core investment strategy with a focus on prime locations in the G4 cities in the Netherlands. The Fund capitalises on continued economic growth in the Netherlands, utilising a cycle-aware investment style and focuses on value creation through active management and core+ investment strategies, resulting in sustainable and consistent outperformance.
PGIM, the global investment management business of Prudential Financial, Inc. (NYSE), is one of largest real estate investment managers in the world, with more than USD168.4 billion in gross real estate assets under management and administration, as of December 31, 2018. Through its PGIM Real Estate and PGIM Real Estate Finance businesses, PGIM leverages a 140-year history of real estate lending on behalf of institutional and middle-market borrowers, a 49-year legacy of investing in commercial real estate on behalf of institutional investors, and the deep local knowledge and expertise of professionals in 31 cities around the world. Since first establishing a European real estate lending platform in 2009, PGIM Real Estate has raised and invested over USD9bn across Europe on behalf of institutional investors.
Rothesay Life is a market leading pensions de-risking insurer with over GBP 36bn AuM of which over GBP 5bn is secured property lending. It was established in 2007 by Goldman Sachs and now has three institutional shareholders – Blackstone, GIC and Mass Mutual.
Commenting on the transaction, Ronald Gordijn, CFO for the CBRE Dutch Office Fund, said:
“We are pleased that PGIM Real Estate and Rothesay Life have partnered up as long-term debt providers of the Fund. With this refinancing the capital requirements of the Fund for the medium term have been secured and we look forward to a successful completion of WTC Amsterdam Tower Ten in 2021, which will be another important highlight of the Fund“.
David Gingell, Executive Director for continental Debt Origination at PGIM Real Estate, noted:
“We are pleased to continue our relationship with CBRE Global Investors on their CBRE Dutch Office Fund by refinancing our initial 2014 loan, and to have supported Rothesay on their first Netherlands transaction. This loan, which bolsters the continued establishment of WTC Amsterdam as the city’s primary meeting place, is consistent with the quality of real estate, sponsorship and partners we strive to work with across the continent. We look forward to continuing to partner with both firms.”
Also, Harish Haridas, Head of Commercial Real Estate Debt, added:
“Rothesay Life is delighted to have worked alongside CBRE Global Investors and PGIM Real Estate in achieving the refinancing objectives and continuing development of the World Trade Centre, Amsterdam complex. CRE loans backed by high quality collateral and experienced sponsorship as exemplified by this transaction are an important component of Rothesay Life’s investment strategy.”
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About CBRE Global Investors
CBRE Global Investors is a global real asset investment management firm with USD 104.2 billion in assets under management* as of March 31, 2018. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2017 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 80,000 employees (excluding affiliates) and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real asset-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real asset-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real asset market, and its calculation of AUM may differ from the calculations of other asset managers.
 Includes USD33.1 billion in assets under administration