HB Reavis sign €29m loan deal for first Slovakian office

HB Reavis, the leading Central and Eastern European commercial property group, has announced the successful completion of a €29m loan agreement for the construction of their latest office in Bratislava.

The agreement paves the way for the completion of Forum Business Centre I in the Slovak capital’s main business district, comprising of a construction loan covering investment costs up to 70%, with a further increase following a maturity of five years.

Bidders included both local and international banking institutions, with Slovenská sporiteľňa offering the most attractive terms. Slovenská sporiteľňa enters into the agreement as the sole financial partner for the project which is predicted to cost approximately €37.5 million.

Jiri Hrbacek, HB Reavis CFO, said: “We considered Slovenská sporiteľňa to be our traditional banking partner since we cooperated successfully in financing the Aupark shopping centre in Bratislava, as well as the Apollo Business Centre I and Aupark Tower office projects.

“Though uncertainty in the Eurozone is reflected in the way that banking institutions assess risk, we are pleased that thanks to our excellent loan history and strong equity position, we are able to secure loan financing for projects of a larger scope.

“Forum Business Centre, with its green building certificate, knows its future anchor tenant already. Based on a long-term contract, the majority of the office space was leased to Slovak Telecom, who will open their new headquarters here.”

Vladimír Krno, director of real estate financing and project finance at Slovenská sporiteľňa, believes the success of previous projects is key to the banks’ eagerness to invest in HB Reavis’ latest venture.

He said: “For years there has been continuous partnership and trust between Slovenská sporiteľňa and HB Reavis. Only a few developers can find first-class tenants on the market in these difficult times, or deliver construction on time as well as keeping promises to their partners.

“Our door is always open to such developers. Clients who were banking with us in the good times are also welcome to do so now that the situation is much more complicated.”

Construction of the Forum Business Centre – which has a total capacity of 18,700m² – began in November 2011, and is expected to be completed by the close of Q2 in 2013.

The property is orientated towards the international market, with steps taken to ensure familiarity in the architectural concept and interior design. It boasts a desirable location at the centre of a major road intersection, and is expected to act as a local urban landmark upon completion.

The developer has invested a substantial amount to the improvement of traffic infrastructure in the area, with new turning lanes in three directions to help ease congestion surrounding the property.

The building – as with all of HB Reavis’ new projects – has been designed to achieve a BREEAM eco-rating of ‘Excellent’, requiring significant forethought in planning the construction and maintenance of the offices.

Following the success of their River Garden Office in Prague, HB Reavis Group has recorded unprecedented growth in tough economic times. The group is also expanding into Poland – one of the fastest growing real-estate markets on the continent – through dual projects at Konstruktorska Business Center and Gdanski Business Center, as well as Vaci Corner Offices in Budapest.

Since 2010, HB Reavis Group has acquired five plots of land in Warsaw totalling nine hectares. They plan to develop 330,000m² of class-A office space, with a projected value of €1.1 billion upon completion.