Invesco Real Estate and Aareal Bank AG agree a lending facility of up to €1bn

Helen Cahill
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The facility paves the way for a 10-year relationship between the bank and the firm (Source: Getty)

Invesco Real Estate and Aareal Bank AG have agreed a loan facility of up to €1bn over a 10 year period, one of the biggest loans sealed in the real estate sector this year.

The loan will be used to grow Invesco Real Estate's European portfolio, which already comprises €3bn worth of investments, and it can be used in 27 locations across seven countries.

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A total €610m has been drawn down already, and Aareal Bank will be able to syndicate parts of the loan to other parties.

Andy Rofe, Invesco Real Estate's managing director for Europe, said: "We are delighted to announce this partnership with Aareal Bank AG, with whom we have worked for many years.

"For us, this is a groundbreaking project in our industry, which creates a loan facility that fits both the profile and nature of our very large and growing, high quality and diverse, pan-European mandate with properties in some of the strongest locations in the UK and Europe."

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Eastdil Secured and Norton Rose Fulbright advised Invesco Real Estate on the transaction. Aareal was advised by DLA Piper.

Duncan Hubbard, real estate finance partner, Norton Rose Fulbright, said: “Against the backdrop of a challenging and uncertain market, we are delighted to be able to bring this transaction to successful close, which will enable Invesco to expand its portfolio. The large and complex financing spanned seven jurisdictions and entailed close cooperation with parties involved to ensure we got it over the line within the required timeframe.”

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