Sberbank CIB Acts as Financial Partner to MLP
OREANDA-NEWS. Sberbank CIB acted as the financial partner to major warehouse real estate developer Multinational Logistics Partnership (MLP) by refinancing the company's debt using three MLP warehouse complexes as collateral. At the same time, Sberbank Merchant Banking, Sberbank CIB's merchant banking department, acquired a 33% stake in the project company in the form of convertible preferred stock. This is a landmark deal for Sberbank CIB in the area of mezzanine finance for warehouse real estate.
At MIPIM real estate show on March 13, 2014, the next step in extending the partnership with MLP was taken when Sberbank CIB signed a strategic partnership agreement with the company. Under the agreement it is planned to broaden cooperation with regard to Sberbank CIB's comprehensive approach to financing[3] the developer's projects, hedging interest rate and foreign exchange risks and providing mezzanine financing by way of acquiring the company's convertible preferred shares.
Today the group that includes MLP consists of four warehouse complexes located on the Leningrad Highway in the Moscow Region (STIK CJSC), Podolsk (MLP Podolsk), St. Petersburg (MLP KAD) and Kiev (MLP Chaika), with a total area of 730,000 m2. The group's properties also include Severnoye Domodedovo Industrial and Logistics Complex and Tomilino Logistics Complex with a total area of 603,000 m2. In total the Group's portfolio consists of 1.33 mln m2 of class A industrial and warehouse space.
The annual MIPIM show, which in 2014 is being held for the twenty-fifth time, is one of the most high-profile international real estate events.
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