News & Analysis

Germany’s pbb provides €68m green loan for ‘Creative’ Paris office

The asset is the redeveloped Le Magnum building which managers Patron Capital and EDR REIM acquired in 2018.

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Munich-headquartered lender pbb Deutsche Pfandbriefbank has provided a €68 million green refinancing package to a joint venture between real estate managers Patron Capital and Edmond de Rothschild Real Estate Investment Management for the ‘Creative’ office building in Paris.

Getting ‘Creative’: Patron will redevelop the Le Magnum building

Designed by architectural firm DTACC, Creative comprises 129,000 square feet of lettable office space, 32,000 square feet of amenities, including two restaurants and a gym, a triple-height entrance hall and electric car-charging.

Pbb introduced its Green Loan Framework, based on industry body the Loan Market Association’s Green Loan Principles, in 2021. The bank scores assets on their energy efficiency, building certificates and other sustainability factors. The German lender pledged to have over 30 percent of green originations in its real estate finance portfolio by 2026.

“Creative has been meticulously designed with a robust environmental focus, resulting in exceptional sustainability certifications. The building has achieved a BREEAM ‘Excellent’ rating, showcasing its commitment to environmental performance,” Keith Breslauer, managing director of Patron, told affiliate title Real Estate Capital Europe.

“Additionally, it holds the OSMOZ certification at level 1, which evaluates the quality of life for occupants, and the French PQA certification, indicating outstanding energy performance,” he added.

Patron acquired Le Magnum, an office building located on the border of Paris’ central business district in Levallois, in May 2018, through its open-ended Patron Capital Fund LP V. The building was bought for €71.5 million from Deka Immobilien, a subsidiary of German lender Deka Bank. The business plan was to redevelop and reposition the building.

In 2022, LVMH Fragrance Brands, a subsidiary of luxury goods giant LVMH Group, agreed a 12-year lease for the entirety of the office space at Creative.

“To have secured a loan from as high calibre a lender as pbb is a strong endorsement of both our business plan for the asset, as well as the credibility of the building’s ESG credentials,” Breslauer said in a statement released this week.