MLP Group enters into EUR 73.4m portfolio project financing transaction with syndicate of BNP Paribas Bank and PKO Bank Polski
MLP Group has entered into a portfolio credit facility agreement with a consortium of two financial institutions. Under the agreement, BNP Paribas Bank Polska and PKO Bank Polski will loan up to EUR 73.4m (approximately PLN 330m) in total to the leading warehouse developer. The agreement demonstrates that the warehouse property portfolio, position and potential of the MLP Group are well perceived by leading banks.
MLP Group will use the proceeds to refinance its existing credit facilities as well as to refinance expenditures planned to be incurred to expand the MLP Wrocław logistics park in Mirków, and also to fund the MLP Group’s projects through repayment of subordinated loans to MLP Group.
‘We have signed a major portfolio financing transaction for MLP Group’s projects with a syndicate of two banks: BNP Paribas Bank Polska and PKO BP. Given the rapidly growing scale of our operations, it is imperative that we optimise our financing sources. We aim to build and maintain a diversified debt structure enabling flexible cost management. The credit facility agreement we have signed with two key banking institutions will contribute to strengthening our financial stability by providing access to a new source of finance and extending the maturity of our debt,’ said Monika Dobosz, CFO at MLP Group S.A.
I am glad the funding provided by the bank syndicate will give MLP Group stable support in implementing its growth plans. The warehouse sector is doing well compared with other segments of the property market, and MLP Group is a leading warehouse developer. We have decided to go ahead with the transaction considering the potential of the warehouse sector as well as the great importance we attach to building long-term relationships with our clients. The transaction marks another milestone in our relationship with MLP Group. I would like to thank the company for their trust,’ noted Marek Kowalski, Head of the Real Estate Finance Department at BNP Paribas Bank Polska.
‘PKO Bank Polski has long been involved in the development of the warehouse and logistics sector in Poland, supporting market leaders with long-term finance. The project finance we have provided to MLP Group as a syndicate member is an expression of our confidence in the company’s business model. We are glad to be able to implement another major project together,’ added Agata Gola, Head of Property Finance at PKO Bank Polski.
As at the end of 2020, the Group held over 715,000 sqm of finished warehouse space. Including projects under construction and in the pipeline, the Group offered a total of nearly 860,000 sqm of modern space. MLP Group maintains a land bank with a capacity of close to 1.29 million sqm of target leasable space. It has also signed a number of reservation agreements to purchase new land for planned logistics parks in Poland (including in Stryków, Pruszków, and Poznań), Germany (including in Gelsenkirchen, Cologne, Frankfurt am Main, and Leipzig), and Austria.
MLP Group’s strategic goal is business expansion in Poland and Germany and further growth in Austria and Romania. Tenants are increasingly interested in city logistics facilities (small units offering modern warehouse space with office space finished to high standard) and big-box facilities. In keeping with its build & hold strategy, MLP Group retains completed logistics parks in its portfolio and manages them independently. All projects undertaken by MLP Group are distinguished by very attractive locations of the logistics parks, application of built-to-suit solutions, and support given to tenants during the lease term.
