Refinancing of an A1 retail property in downtown Nijmegen

Background

MWPO is developing the former V&D building on the Grote Markt in Nijmegen into a mixed-use complex featuring retail space and 191 residential apartments. The residential units are being sold, and the five retail units—with a combined leasable floor area of approximately 9,500 m²—are fully leased and are being held as an investment by MWPO.

In order to sell the residential portion of the project to an institutional investor, the property was legally divided into a retail section and a residential section through a division of condominium rights. In this context, MWPO sought to refinance the existing project financing, allowing the financing for the retail property to be refinanced on a long-term basis so that the financing structure would align with the new situation.

Asset Partners has prepared a comprehensive financing memorandum for this purpose and approached the market to solicit indicative financing proposals for the retail property.

Ultimately, the financing was arranged through ABN AMRO, the existing lender, which best suited the (transition to the) new situation in terms of conditions and flexibility. The new loan has a fixed interest rate for the entire term and a repayment schedule with a lump-sum payment at the end of the term, in line with the interim sale of the upper-floor residential units.

The new financing structure aligns with MWPO’s redevelopment strategy and provides peace of mind and stability during the period in which the division of condominium ownership rights and the sale of the residential units are being finalized

Result

• Refinancing of the existing financing for the retail units on appropriate terms
• Financing structure tailored to the phased redevelopment and sale of the upper floors
• Fixed interest rate for the entire term, with a repayment schedule that includes lump-sum payments
• Continuation of the relationship with the existing lender, ABN AMRO, under improved terms