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Business Park Sofia arranges a new € 133 million senior facility from a consortium of leading banks in a benchmark transaction for the CEE market

August 03, 2017, 6:43 (PX Newswire)

OTP Bank, its Bulgarian subsidiary DSK Bank and Postbank granted a new landmark senior financing package to Business Park Sofia (BPS) - the largest business office park in Central and Eastern Europe

Pricing set at 2.65 percent, plus the 3-month Euribor, and a stated maturity of 2027.

Sofia/Frankfurt/Budapest/Moscow/New York/London/San Juan, August 3, 2017 – Arco Real Property Holdings, a joint venture between Arco Capital and Deutsche Asset Management’s DB Private Equity & Private Markets group, has a new financing and construction facility for BPS.

OTP Bank PLC, its Bulgarian subsidiary DSK Bank EAD, and Postbank (legally named Eurobank Bulgaria AD) provided a new senior and construction facility to Business Park Sofia (BPS), the largest office park in Central and Eastern Europe, to refinance the business park at a lower cost of funds and longer loan tenure, reaching now a total volume of € 133 million. The transaction closed on 2 August 2017.

The new joint facility is being provided by three banks, OTP Bank PLC and DSK Bank EAD acted as lead arrangers, syndication agents and underwriters. OTP Bank PLC is acting as facility agent and DSK Bank EAD is the security agent and account bank for this transaction.

The Business Park Sofia office complex consists of fourteen Class A modern buildings, located in the prime location for business in Sofia. The total built-up area will exceed 210, 000 sqm upon completion of the new development and is fully leased to more than 150 international tenants and accommodating more than 11,000 employees. The business park comprises more than fifty percent of currently leased Class A office space in Sofia’s central business district. BPS is the most prestigious office center in Sofia and in the Central and Eastern Europe region. It offers a unique architectural design and high technical specification of the buildings.

The construction of a new Class “A” building, which shall be known as Building 15, is underway and being directed by leading German construction management company Lindner Immobilien Management. The construction is expected to be completed at the end of 2018. Building 15 shall offer a total of 20,000 sqm of leasable space, with five levels designed for office use, retail units on the ground floor, and two underground parking levels with a total of 255 parking spaces. The building has already been substantially let to major international tenants. As of today, Building 15 has been 90 percent pre-let.

“Business Park Sofia is the most iconic office park in the Sofia CBD, which is one of the most dynamic markets in the Central and Eastern Europe region,” said Boyan Stefov, Board Member and Head of Corporate Banking, DSK Bank EAD. “When you look at the most desirable office address in the capital, the business park is always amongst a very elite peer set, and that is always led by Business Park Sofia.” according to Stefov.

“This transaction is a rare combination of an exceptional real estate, an outstanding market, and a top tier institutional ownership. We, and our lending syndicate, felt extremely comfortable in leading the path in structuring a new CEE benchmark transaction that provides our new client with a very competitive cost of funds and ten-year maturity in order for them to fully develop their business plan. DSK Bank always try to be at the forefront of lending trends and marquee transactions.” added Stefov.

"The new financing structure provides extremely attractive term financing for our balance sheet assets and Business Park Sofia. This important transaction gives us greater flexibility and significant strength as we build on our existing operations as the leading regional business park," said Borislav Hristov, Chief Financial Officer at Arco Real Estate Management. Hristov added: “Our financing agreement with the new bank consortium further affirms our vision for the transformation of Business Park Sofia being a ‘metrohub’ in the Sofia CBD. With approximately 99 percent of the office park already under lease agreements, it’s clear that there is immense enthusiasm in the market for this type and quality of asset. This is another benchmark transaction for Arco, one that highlights the value of our extensive direct origination capabilities as well as our strong operating culture."

Business Park Sofia (www.businesspark-sofia.com) is the largest office park in Central and Eastern Europe and was the first business park in Bulgaria. The facility accommodates some of the most successful businesses in diverse industries. The park is designed to provide efficiency, flexibility and convenience to corporate tenants of any size and scope. It is a genuine multifunctional high-tech business park, which combines essential business components and related sectors in a vibrant and sustainable community.

DSK Bank is the oldest bank in Bulgaria and the market leader in retail and private banking, with an established presence in the Corporate and SME segment. Since 2003 it has been part of OTP Group, headquartered in Hungary. Servicing some three million customers, DSK Bank practically reaches every Bulgarian family. Disposing of the largest branch network in Bulgaria, the bank has an incomparable service-provision infrastructure, it is well acquainted with the local potential and offers high level of servicing through individual approach and full range of bank products and services, which are tailor made to the needs of all customer segments.

OTP Bank Group is one of the largest independent financial services providers in Central and Eastern Europe with full range of banking services for private individuals and corporate clients. OTP Group comprise large subsidiaries, granting services in the field of insurance, real estate, factoring, leasing and asset management, investment and pension funds. The bank is serving clients in 9 countries, namely Hungary, Slovakia, Bulgaria, Serbia, Romania, Croatia, Ukraine, Montenegro and Russia. Nowadays OTP Groups' more than 36,000 employees are serving 13 million clients in over 1,500 branches and through electronic channels on all the markets of the bank. OTP is still the largest commercial bank in Hungary with over 25% market share.

Postbank is the fifth biggest bank in Bulgaria in terms of assets, having a broad branch network across the country and a considerable client base of individuals, companies and institutions. Postbank has more than 25-years’ presence as one of the leaders in Bulgaria’s banking sector. The bank is a decisive factor in innovation, in shaping the country’s banking trends in recent years and award-winning for its innovation. Postbank occupies a strategic position in retail and wholesale banking in Bulgaria. It is one of the market leaders in credit and debit cards, mortgage and consumer loans, saving products, as well as regarding corporate tailored products - from those for small businesses to large international companies operating in the country. The bank has built one of the most developed branch networks and modern alternative banking channels.

In March 2016 Postbank acquired the business of Alpha Bank Bulgaria which is another step forward for consolidating its position as a systemic bank and in expanding its customer base. Postbank is a member of Eurobank Group. Eurobank is a dynamic banking group active in seven countries, with total assets of €65.7 billion and 15,929 employees.

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