Powerhouse France completes €793.5 million refinancing of residential portfolio with BNP Paribas

Landmark deal positions Powerhouse France for further growth

TwentyTwo Real Estate (the “Company”) announces that Powerhouse France, an investment vehicle managed by the Company, has completed a €793.5 million refinancing arranged and underwritten by BNP Paribas.

The six-year financing package comprises a €205 million corporate financing facility provided to Powerhouse France and a €588.5 million senior mortgage facility provided to its subsidiary S.A.F.R.A.N..

Powerhouse France owns, through S.A.F.R.A.N., a portfolio of circa 7,140 mainly single family residential units (the “Portfolio”) with a value of around €1.2 billion. Located across France, the assets are leased to EDF, the state owned French electric utility company, under a long term master lease agreement. The Portfolio was acquired by Powerhouse France in June 2013.

The Portfolio is managed by Scaprim Services, the specialist real estate services arm of TwentyTwo Real Estate in France, which has been asset and property manager for the portfolio for the last 15 years.

The €793.5 million financing contributes to the group’s positioning for a further growth of its portfolio of residential properties.

Daniel Rigny, founder and managing partner of TwentyTwo Real Estate said: “We are very pleased to have received such significant support from BNP Paribas to complete this strategic refinancing. This transaction is evidence of the strength of our management platform and the quality of this substantial portfolio, which provides a long term inflation hedge whilst generating strong cashflow.

“With this refinancing now complete, and the capital structure fully adapted to its strategic development, Powerhouse France is in a robust position to grow its property portfolio further. We believe that the affordable end of French housing market, which is the focus of Powerhouse France, displays good fundamentals supported by strong demographics and offers attractive growth prospects. Given its scale, access to capital and the nationwide expertise in the residential sector provided by Scaprim Services, we firmly believe that Powerhouse France is ideally placed to seize future growth opportunities in the French market.”