Global law firm Ashurst has acted for SMBC Bank EU AG, Milan Branch, as arranger and lender of credit facilities made available to a vehicle managed by international real estate investor and manager Cromwell Property Group (Cromwell) to finance the acquisition, by the borrower, of a logistics portfolio comprising seven assets located in Northern Italy and let to DHL. Ashurst advised also SMBC Bank International plc as facility agent and security agent in respect of the financing.
Cromwell and Korean asset manager IGIS provided the equity to complete the transaction. It is intended that the Italian assets will form the seed portfolio for a new "Cromwell European Logistics Fund" once launched. The Fund will be focused on core + logistics assets throughout Benelux, France, Germany and Italy, with a target total gross asset value of Euro 400 to 500 million.
The Ashurst cross-border deal team was led by Milan banking partner Mario Lisanti, supported by Gian Luca Coggiola (senior associate), Andrea Di Rosa (senior associate), Martina Riva (trainee) and Davide Cipolletta (trainee); real estate partner Andrea Caputo advised on the property aspects of the deal, supported by trainee Vincenzo Esposito. Australian law advice was provided by a Melbourne-based team led by banking partner Kenneth Nguyen, which included also Campbell Johnston (senior associate) and Nabila dos Santos (associate). Luxembourg-based banking partner Fabien Debroise advised on the Luxembourg aspects of the deal, supported by Chiara Bardini (tax director), Ludmilla Bouchez-Lecuy (associate) and Anna Kozakiewicz (associate).
Mario Lisanti commented: "We were delighted to work with the SMBC team on this complex transaction. Our cross-border capabilities and our strong team spirit were crucial to our client delivery and to work efficiently with the sponsors and their advisors". Gian Luca Coggiola added: "This deal shows that certain sectors of the real estate market have been more resilient than others following the spread of the Covid-19 pandemic. We expect more logistics investments in Italy in the upcoming months, including from capital providers based in the APAC region".
Gwendal Kalkofen, Cromwell’s Head of Real Estate Finance, added: "We are very pleased to have been supported again by SMBC Bank EU AG and their legal counsel, Ashurst, who demonstrated its capabilities and excellent track record in cross-border transactions. We look forward to further expand our partnerships across the European real estate markets”.
Robert Carney, Head of EMEA Real Estate Finance at SMBC Bank International plc, stated: “SMBC Bank EU AG is very pleased to have had the opportunity to arrange this cross border real estate financing on behalf of Cromwell and IGIS alongside the Ashurst team. The transaction demonstrates the continued demand for high quality properties in targeted sectors across Europe and demonstrates SMBC Bank EU AG’s capabilities to arrange real estate financings within a broad spectrum of continental European jurisdictions”.
