Prime Kapital raises 125 million Euro for six commercial real estate assets

Real estate developer Prime Kapital announced today that it has raised a 125 million Euro green club loan facility for its development joint-venture with listed property investor MAS plc, real estate investor listed on the Johannesburg Stock Exchange.

The multi-tranche facility is provided by a consortium of four domestic and international banks and was raised on a project finance basis for five new commercial retail properties that Prime Kapital recently opened in Romania and a sixth one currently under development. These are Prime Kapital’s new Zalau Value Centre, Dambovita Mall (in Targoviste), Sepsi Value Centre (in Sfantu Gheorghe), Barlad Value Centre, Prahova Value Centre (in Ploiesti), as well as the retail mall project, currently under construction, in Alba Iulia.

With the local and head office operations of the Raiffeisen Bank and Alpha Bank financial services groups acting as arrangers and underwriters of the transaction, the new facility complements other lines of committed long-term capital available to Prime Kapital for project development purposes.

Prime Kapital Partner Johan de Lange stated: “We are pleased to have reached financial close on this landmark financing for several Prime Kapital’s new commercial centers throughout Romania. The level of appetite that we have encountered among local and international banks during the transaction for this multi-property financing was really encouraging. We believe that the institutional funding support provided by the banks for the transaction is a validation of Prime Kapital’s retail asset investment strategy with its strong focus on geo-diversified, locally dominant, sustainable green developments that have substantial and meaningful community impact. We wish to convey our appreciation to our colleagues at Raiffeisen Bank and Alpha Bank, as well as the legal team at Dentons for their professionalism in helping us make this happen”.

In line with the sustainability objectives of Prime Kapital and its funding partner MAS plc, the proceeds of this new facility will support the development of a further number of new green projects that form part of Prime Kapital’s substantial secured development pipeline in CEE.