Hillwood’s EU Industrial Club III has closed a €368.19m loan with Aareal Bank, marking a milestone in its logistics property portfolio across Poland and Germany.
Aareal Bank, an international provider of financing and banking solutions for the property sector, structured the investment loan to support Hillwood’s Class A logistics properties.
The loan, split into two tranches, includes €303.43m available immediately and an additional €64.76m reserved for future developments.
Hillwood’s EU Club III portfolio comprises 18 assets, with 13 properties in Poland and five in Germany.
The agreement also provides the potential for the total borrowings to increase to €500m, enabling further logistics development opportunities.
Tomasz Jaroszewski, vice president at Hillwood Poland, said: “We’re delighted to have reached agreement with Aareal Bank on a strategic investment plan that supports our vision for the future and facilitates the further expansion of our business in Poland and Germany.”
The loan includes an investment facility for 14 operational assets and additional funding for four projects scheduled to begin construction in 2025.
Severin Schoettmer, managing director, special property finance, at Aareal Bank, added: “With its assets built to BREEAM standards, we have every confidence that Hillwood’s ambitions align with our commitment to a sustainable future.”
Advisers for the deal included Clifford Chance for Hillwood and DLA Piper for Aareal Bank.
