LREC finances XXL real estate deal
Brunswick Real Estate has provided Pilängen Logistik AB, a company established by Pareto Securities AB, with senior financing via its debt financing arm Leimdörfer Real Estate Capital.
The loan enables the acquisition of XXL’s main logistic facility in Örebro, backed by a newly-signed 14-year lease. The building is currently being extended to more than 43,000 square metres.
Maarit Nordmark, chief investment officer at LREC, said: “We are delighted that Pareto chose LREC to act as senior debt provider in this transaction, and we have successfully secured a solution which suits both parties for the long-term.”
LREC is an unlevered real estate debt fund with Nordic institutions as main investors. The fund offers senior loans in the range of SEK100m-SEK400m, with a term of up to eight years.
CEO Louise Richnau commented: “Our strengths are speed and flexibility. This, combined with the wider Brunswick Real Estate attributes of a strong capital base and unparalleled expert knowledge within Nordic real estate, means we offer clients market-leading advisory, lending and investment solutions.”
Stafan Gattberg, head of project finance at Pareto Securities AB, added: “This investment is a part of a strategy to strengthen our presence in the Nordic real estate market further. We are very positive about this transaction, which includes a strong lease agreement and tailored financing. Also, the modern facilities, strong tenant profile and excellent logistics location underpins a solid growth case for our investors. We look forward to a long-term relationship with both XXL and LREC.”