CTP Agrees €1.9 Billion Syndicated Financing Package in CEE's Largest Real Estate Transaction of 2019

PRAGUE, June 24, 2019 /PRNewswire/ -- CTP and a consortium of three banking groups agreed on underwriting package of €1.9 billion for CTP's Czech industrial portfolio, comprised of 200 buildings, covering 2.7 million m² of premium industrial space. In the largest real estate transaction to date in Central and Eastern Europe, the 7-year loans provide for the refinancing of €1.6 billion of existing properties and extends €269 million in new financing for projects to be completed in the next 18 months.

"We are pleased to confirm our continued cooperation and deepened relationships with our core banking partners in concluding this milestone syndicated loan transaction. This deal secures our financing in the Czech Republic for the mid-term and will help us significantly in achieving our next goal of growing to 10 million square metres," stated Remon Vos, CTP Group CEO.

The transaction consolidates 40 existing loan agreements into one syndicated loan. "The new loan structure significantly simplifies our previous financing arrangements, making us fitter for the future. We can streamline loan administration and processing and benefit from secure funding of our industrial portfolio over the mid-term, in addition to development financing for the next 18 months," commented Zdeněk Raus, CTP CFO for the Czech Republic.

"The transaction volume of €1.9 billion makes the deal the largest ever real estate transaction in Central and Eastern Europe, not only the Czech Republic. All stakeholders -- especially our tenants -- benefit from the stable and secure funding resulting from this transaction, allowing them to focus on their core business and for CTP to continue to provide market-leading services. The strong long-term relationships we have with our banks proven by this deal provide the basis for further cooperation with respect to our CEE portfolio, which now stands at over 5.0 million m²," stated Richard Wilkinson, Group CFO.

"This deal sets a new benchmark for real estate financing in Central and Eastern Europe in terms of size and complexity. It underscores the leading position of Erste Group in the Central Europe region and Česká spořitelna in the Czech Republic. This was a deal that continues our excellent and long-term relationship with CTP," stated Patrick Zehetmayr, Head of Real Estate Financing at Erste Group and Pavel Kráčmar, the member of the board of Česká spořitelna.