Crestyl refinances DOCK IN office project with German banks investing over CZK 3.3 billion
Prague, 19 May 2021 – the Czech development and investment group Crestyl entered into an investment loan agreement in May with a consortium of German banks made up of pbb Deutsche Pfandbriefbank (pbb) and Helaba, at the same time drawing funds of EUR 130 million (over CZK 3.3 billion). Each of the foreign banks is contributing exactly half of the investment loan. This investment loan has been used to refinance existing bank loans for the already completed office part of the Prague DOCK project – meaning the four DOCK IN buildings with their total leasable area of over 58 000 m2.
“Our unique DOCK project has matured to the point at which it must be seen as a whole and no longer separately as its individual stages,” said Přemysl Hubrt, CFO at the Crestyl group. “The refinancing with foreign partners was a strategic decision that will free our hands to finance our other development projects with Czech banks, with whom we already have long-term cooperation in this field. The transaction is unique for the Crestyl group in that it is our largest ever transaction with a consortium of foreign banks, and lays a strong foundation for further cooperation in the future.”
In addition to releasing funds for the financing of other projects with existing Czech banking partners, the objective of the refinancing was also an overall reduction in the debt servicing and administration burdens. There were previously separate loans from different banks for each of the buildings, and now everything has been merged. The Dentons law firm participated in the preparations for the transaction for Crestyl.
Charles Balch, Head of International Clients, UK, CEE & USA at pbb Deutsche Pfandbriefbank said: "DOCK IN is a popular class A project and we are very pleased to support Crestyl in the refinancing, together with our colleagues from Helaba. The deal underlines our continued strong interest in the CEE real estate markets, in particular in the office markets in key cities.”
Martin Erbe, Head of Real Estate Finance International Clients Germany, CEE & Benelux at Helaba: “With the DOCK project, Crestyl has created a wonderful mix of living, working and leisure. This lighthouse project represents a benchmark for future developments where people feel comfortable, while at work and also outside the office. We at Helaba are very pleased to finance this outstanding landmark for Crestyl together with pbb. Even if times are hard, together with good partners it can be managed.”
The DOCK district growing along two blind branches of the River Vltava in Libeň in Prague is practically complete and the last, fifth, building—the DOCK IN FIVE office building—is currently under construction. The residential buildings are all complete and the apartments sold. Similarly, all the complete office buildings are—except for the last few square metres—fully occupied by tenants. The completion of the last DOCK IN FIVE office building is planned for the second half of 2022. It will offer around 21 500 m2 of office and retail space. The total floor area of the DOCK IN commercial complex is around 80 000 m2. The DOCK IN offices have attracted a number of important companies such as Saint-Gobain, Dáme jídlo, BNP Paribas Cardif Pojišťovna, ASSA ABLOY, LEGO Trading, Publicis, Henkel and Hornbach.
About the CRESTYL group:
The CRESTYL group has been operating on the Czech real estate market for more than twenty years now and is one of the leading developers, with a wide portfolio of residential and commercial projects. Currently, it actively deals with the development of more than fifteen sites all over the Czech Republic with a total investment value exceeding EUR 1.2 billion. This also includes the largest renovation project in the Prague centre called Savarin, which interconnects Wenceslas Square and Na Příkopě, Jindřišská and Panská streets, the growing DOCK quarter in the Prague district of Libeň and the newly emerging Hagibor quarter near the Želivského underground station. In all of its projects, the CRESTYL group pays attention in the long- term to quality, design, premium construction, use of first-rate materials and overall convenience for inhabitants as well as visitors.
About pbb Deutsche Pfandbriefbank:
pbb Deutsche Pfandbriefbank is a leading specialist lender for financing commercial real estate and public investments in Europe and the United States of America. pbb is a major issuer of Pfandbriefe, which makes it also an important player in the European covered bond markets overall. pbb is listed on the Frankfurt Stock Exchange. In real estate finance, the bank’s primary target of new business is professional real estate investors and developers. Core asset classes financed include office, retail, residential, logistics/warehouse properties and hotels. The regional focus is on Germany, the UK, France, the Nordic Countries, selected countries in Central and Eastern Europe and Spain. pbb is also active in selected regions in the US.
About Helaba:
Helaba is one of the leading banks in the German financial capital of Frankfurt, the Helaba Group employs approximately 6,200 people and has total assets of € 219 bn. Helaba is a full-service bank closely incorporated in the German Sparkasse organisation. It provides a comprehensive range covering the whole of the value chain from finance, design and development to the operation of top end properties. Helaba also offers a host of attractive participation opportunities for institutional investors. Real estate business is not only one of the Bank’s core business areas, but commercial real estate finance is one of its strongest areas and is consistently regarded in national and international financial markets as one of the most successful thanks to its outstanding expertise, an intelligent risk profile and a compelling proposition. Helaba started business in Central Eastern Europe in 2006. The bank finances office, retail and logistics properties in Poland, the Czech Republic and Slovakia for institutional investors.
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