Allianz and Brookfield Provide Debt Facility to Blackstone for HFF-Coordinated Refinance of London’s St. Katharine Docks

Allianz Real Estate and Brookfield have refinanced Blackstone’s St. Katharine Docks, London, in a deal coordinated by HFF Real Estate Limited (HFF). Allianz as senior lender arranged the senior facility on behalf of a number of Allianz Group insurers. Brookfield - through the Brookfield Real Estate Finance Fund V - provided mezzanine financing.

The five-year, floating-rate deal represents the first time Blackstone has borrowed from both Allianz and Brookfield in Europe. Additionally, this marks the first transaction globally in which Allianz Real Estate and Brookfield have partnered together on a financing.

St. Katharine Docks, a 23-acre estate built in 1827 and central London’s only marina, has evolved into an iconic destination within London with more than 500,000 square feet of commercial space and featuring 80 companies, 24 bars and restaurants, 200 berths and 6,500 employees. In 2014, Blackstone strategically purchased the asset via the acquisition of Max Property Group and has since enhanced the asset via significant capital improvements that have attracted top-tier tenants such as WeWork, Clarkson Plc., QA Limited and Six Degrees.

The debt provided by Allianz is split into a senior term loan and a capex line to redevelop Devon House, a 90,000-square-foot building on the estate. It is Allianz’ second UK transaction in 2018 – in April, Allianz lent £50 million as part of the £100 million development financing for 80 Fenchurch Street, a prime office property in the City of London. Both deals are part of Allianz’s European value-add growth strategy.

“This is a landmark opportunity to refinance one of London’s unique estates. St. Katharine Docks is a prime development that correlates with our focus on very high-quality, long-term assets owned by exceptional managers such as Blackstone,” said Roland Fuchs, Head of European Debt at Allianz Real Estate. “This deal, our second value-add transaction in the UK this year, also illustrates our increasing focus on London, which we believe will continue to be one of the world’s most influential and dynamic cities offering a compelling selection of prime assets for investors.”

The HFF debt placement team working on behalf of Blackstone included director Brad Greenway and managing director Edward Daubeney.

“To be able to bring together three world-class real estate platforms for an inaugural, iconic transaction shows the strength of the London market and Blackstone’s ability to impressively execute on the identified repositioning,” Greenway said.

“Blackstone has breathed life into St. Katharine Docks while continuing to execute its successful business plan,” Daubeney added. “It has been a real pleasure working with all the parties involved on an important mandate for the HFF London team.”

About Allianz

The Allianz Group is one of the world's leading insurers and asset managers with more than 86 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing over 660 billion euros on behalf of its insurance customers while our asset managers Allianz Global Investors and PIMCO manage an additional 1.4 trillion euros of third-party assets. Thanks to its systematic integration of ecological and social criteria in its business processes and investment decisions, the company holds the leading position for insurers in the Dow Jones Sustainability Index. In 2017, over 140,000 employees in more than 70 countries achieved total revenue of 126 billion euros and an operating profit of 11 billion euros for the group.

About Allianz Real Estate

Allianz Real Estate is the strategic real estate organization within the Allianz Group and a leading international real estate investment and asset manager. Allianz Real Estate develops and executes worldwide tailored portfolio and investment strategies on behalf of the Allianz companies, considering direct as well as indirect investments and real estate loans. The operational management of investments and assets is currently performed in 5 regions, West Europe (Belgium, France, Italy, Luxemburg, Portugal, Spain), North and Central Europe (Austria, CEE, Germany, Ireland, Nordics), Switzerland, USA and Asia Pacific. The headquarters of Allianz Real Estate are located in Munich and Paris. Allianz Real Estate has approximately 56 billion euros assets under management.

Forward-looking statements

The statements contained herein may include prospects, statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such forward-looking statements.

Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group's core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events), (iii) frequency and severity of insured loss events, including from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related integration issues, and reorganization measures, and (xi) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.

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About Brookfield

Brookfield is one of the world’s leading alternative asset managers, distinguished by a 115-year history of owning and operating real assets. Brookfield manages approximately $285 billion of assets focused on real estate, infrastructure and private equity.

About Blackstone

Blackstone is one of the world’s leading investment firms. The firm seeks to create positive economic impact and long-term value for its investors, the companies Blackstone invests in and the communities in which Blackstone works. The firm does this by using extraordinary people and flexible capital to help companies solve problems. Its asset management businesses, with approximately $440 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

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Allianz Real Estate:
LEILA SALIMI, +33 1 42 99 63 15
[email protected]
or
Citigate Dewe Rogerson FAO Nick Corrin / Hugh Fasken / Patrick Evans
+44 (0)20 7638 9571
[email protected]
[email protected]
[email protected]
or
HFF:
BRAD GREENWAY, +44 (0)20 7509 6700
HFF Director
[email protected]
or
EDWARD DAUBENEY, +44 (0)20 7509 6700
HFF Managing Director
[email protected]
or
KIMBERLY STEELE, 713 852 3420
HFF Digital Content/Public Relations Specialist
[email protected]