Orange Capital Partners refinances acquisition debt of Dutch residential real estate portfolio
Orange Capital Partners (OCP), a Dutch real estate investment and asset management company based in Amsterdam, has refinanced the acquisition debt secured against multiple residential portfolios in the Netherlands, with approximately 700 units and a total net market value in excess of EUR135 million.
The portfolio is geographically distributed throughout the Randstad with a focus on Amsterdam, Amstelveen and The Hague.
ABN AMRO Bank, the financer of the original acquisition of the portfolios, acted as arranger and placement agent on the transaction, teaming up with PGIM Real Estate Finance to execute the seven-year senior term loan facility. PGIM Real Estate Finance is the commercial mortgage lending business of PGIM, Inc (“PGIM”). PGIM Real Estate Finance took a majority fixed rate participation in the facility, while ABN AMRO, underlining its commitment, remained active in the transaction as agent, and took a minority floating rate participation. The debt facility has a total size of EUR 78.5 million.
The resulting transaction shows OCP’s commitment to act as a joint venture- and local operating partner for pension funds, investment banks and family offices interested in building their real estate exposure.
OCP’s legal advisors to the transaction were Clifford Chance, while Allen & Overy provided legal advice to the lenders.
Hedde Reitsma, Partner at Orange Capital Partners, says: “We are excited to have closed this refinancing transaction together with ABN AMRO and PGIM at more attractive terms for our investors than the original acquisition financing. The ABN AMRO team has assisted us in a tremendous manner during the origination of the original debt, throughout the refinancing process and as a current lender to our investment funds. For OCP this refinancing underlines that we are a financially astute investment manager for our institutional partners.”
Boudewijn Brouwer, Director Debt Capital Markets at ABN AMRO, says: “ABN AMRO is proud to arrange and participate in this transaction and is happy have been able to work together with all parties involved in such an efficient manner. This transaction underlines once more that we are able to successfully assist our clients in realising their investment strategies by supporting them with our balance sheet, but also to partner up with other institutional investors where possible to further optimise the funding structure.”
David Gingell, head of Continental Europe Senior Debt Originations at PGIM, says “We’re very excited because this represents a series of firsts for us: our first residential financing in the Dutch market, a preferred asset class of PGIM Real Estate Finance globally; the first time we have supported OCP in their growth ambitions; and the first time we have partnered with ABN AMRO to provide an innovative and flexible financing solution.”