Valad completes £250m refinance

European fund manager Valad has completed a €300m (£250.2m) financing with four banks for its European High Income Fund.

The senior facility, which has also been extended for a further four years, is jointly underwritten by Austrian bank BAWAG, German banks Helaba and Deutsche Pfandbriefbank and Natixis.

The refinanced EHI portfolio comprises 63 light industrial assets totalling around 7.8m sq ft. Around 18 of the properties are located in Germany, 21 in France, predominantly in the Ile de France region, and 24 in the Netherlands.

The pan-European multi-let industrial fund was established in 2004 and has a mandate to invest in light industrial estates with the potential for high income and capital growth. It targets a 12% internal rate of return.

David Kirkby, head of funds management at Valad Europe, said: “This is an excellent result for our investors in the EHI fund which include a number of our pension and sovereign wealth funds.

“The new €300m loan facility, backed by existing and new lenders, together with an extension of the life of the fund to the end of 2015, has created an excellent opportunity to manage and trade the portfolio to optimise returns.”

Fraser Kennedy, chief financial officer for Valad Europe, said: “Given the current economic headwinds prevailing over the eurozone, the successful financing of this €300m European cross-border loan facility with a group of banks is an endorsement of the quality of our real estate investment management platform.

“We are delighted with the consistent and strong support offered to us by the lender group, which also demonstrates the strength of our relationships with them and their confidence in us.”

Bernhard Scholz, member of the management board at pbb Deutsche Pfandbriefbank, added: “As joint arranger with Helaba, we are delighted to have been able to support Valad on the financing of the EHI fund. The fund holds a good underlying portfolio of assets located across Europe.”