Hillwood closes €368m loan with Aareal Bank

Hillwood’s EU Industrial Club III has announced the successful closure of a €368.19m loan with Aareal Bank AG, a leading international provider of financing, banking, and payment solutions for the property sector.

The refinancing relates to Hillwood’s extensive EU Club III portfolio of Class A logistics properties, comprising 18 assets strategically located in Poland and Germany – five in Germany and 13 in Poland. The investment loan is structured to be split into two tranches: €303.43m available immediately on day one and an additional €64.76m reserved for future developments, acceding upon completion.

Tomasz Jaroszewski, Vice President, Hillwood Poland, said: “We’re delighted to have reached agreement with Aareal Bank on a strategic investment plan that supports our vision for the future and facilitates the further expansion of our business in Poland and Germany.”

The loan includes an investment facility for 14 operational assets and additional funding for four projects scheduled to commence construction in 2025. The deal also offers provision for a potential increase to €500m of total borrowings to support further logistics developments.

Commenting on this significant milestone Armin Senoner, Director (DE/UK) Debt Capital Markets, Hillwood, said: ““We are excited to embark on our first transaction with Aareal Bank, marking a significant step in building a strong and reliable partnership.”

Severin Schoettmer, Managing Director Special Property Finance  of Aareal Bank, said: “We are very happy to support Hillwood in growing its portfolio of modern, Class A logistics properties in Central Europe. With its assets built to BREEAM standards, we have every confidence that Hillwood’s ambitions align with our commitment to a sustainable future.”

Hillwood was advised by international law firm Clifford Chance, and Aareal Bank was advised by DLA Piper, a global law firm with lawyers in over 40 countries.