Salans’ Global Real Estate Group and European Restructuring, Reorganisation & Insolvency Practice Group have provided legal advice to ORCO-GSC on the refinancing of its outstanding multi-million Euro-loan with The Royal Bank of Scotland plc.
The refinancing was made possible by the drawing of a new loan with a total volume of EUR 269.6 million with five German banks: DG HYP, consortium lead, Coreal Credit Bank AG, Düsseldorfer Hypothekenbank AG, HSH Nordbank AG and Investitionsbank Berlin. The new loan has a term of five years and an interest service lower by 2 percentage points than the initial RBS loan. The agreement stipulates a mortgage collateralisation of the loan, a minimum capex spending commitment as well as quarterly amortization, which will reduce the company`s LTV based on the current company valuation to approx. 55% in 2017.
DUKON Deutsche Unternehmenskapital – which also structured the above referred banking consortium – and Rothschild provided advice on financing issues and in terms of legal issues, Matthias Gehrke of Gehrke Zumbroich & Partner and Salans LLP provided the legal advice.
Bernhard Gemmel, head of Salans’ German finance practice, commented that “we are extremely proud to have contributed to the successful refinancing by ORCO-GSG of this notably large Berlin real estate portfolio, especially given the current difficult market conditions for refinancings of this size.”
Andreas Ziegenhagen, lead restructuring partner and German Managing Partner, added that “this refinancing is significant not only due to its size, but because it also highlighted the strengths and close integration of our teams across our Berlin and Frankfurt offices.”
ORCO Property Group, established in 1991, is one of the leading Central European property companies. ORCO Property Group is based in Luxembourg and has listings on NYSE Euronext Paris, Prague and Warsaw.
Robert Z. Lazar, Co-Chairman of Salans’ Global Real Estate Group, commented that “we are pleased to have closed another important transaction for ORCO Property Group. This transaction further demonstrates our team’s capabilities in Germany.”
Advisors:
Salans: Bernhard Gemmel (Partner, Banking & Finance, Frankfurt), Andreas Ziegenhagen (Partner, Restructuring, Berlin), Robert Z. Lazar (Partner, Real Estate, Paris/Prag), Mike Danielewsky (Partner, Restructuring, Frankfurt), Tobias von Gostomski (Counsel, Banking & Finance, Frankfurt), Dr. Detlef Spranger (Counsel, Real Estate, Berlin), Sebastian Schmid (Counsel, Real Estate, Frankfurt), Tom Braegelmann (Senior Associate, Restructuring, Berlin).
