Blackstone Mortgage Trust (BXMT) has refinanced KKR’s €102.8m all-cash acquisition of two Spanish retail and leisure parks with a €72m five-year whole loan, reflecting the US and European-focussed mortgage real estate investment trust’s maiden Spanish loan.
The whole loan, which reflects a 70% LTV, will finance the acquisition of the assets as well as a capex program.
KKR acquired the 523,589 sq ft Nassica Retail and Leisure Park, in Getafe in the southern outskirts of Madrid, and the 180,233 sq ft Vista Alegre Retail Park, a retail park in Zamora, from Pillar Retail Europark Fund (PREF) in January for €102.8m.
PREF, 65.3% owned by British Land, is a matured closed-ended fund now managed by INTERNOS.
Nassica Retail and Leisure Park benefits from the mix of leisure operators (anchored by a Cinesa cinema), leading retailers such as Conforama, Worten, Toys R Us and Merkal as well as a Carrefour hypermarket and.
Vista Alegre Retail Park is let to 14 operators including anchors AKI, Froiz and El Corte Ingles Oportunidades.
KKR is working with a local retail partner, Neinver, who developed Nassica and manages the adjacent outlet center. The business plan consists in repositioning Nassica and improving the tenant mix through a capex program to increase rent-roll and asset value.
The two Spanish retail assets were previously refinanced by Deutsche Pfandbriefbank (PBB) with a €61m senior loan.
BXMT had an unpaid balance of $3.48bn and is financed with six separate six credit facilities totalling $2.9bn, including two separate sterling-denominated facilities together accounting for £403m.
In March, BXMT extended a £78m development to finance Rowan and GI Partners’ £154.8m valuation of Aldwych House, which in undergoing a speculative redevelopment.
BXMT’s two-tranche floating rated loan is priced at above 400 basis points over LIBOR and includes a £28m facility for a capex line.