Global law firm Reed Smith has advised Arco Capital Corporation Ltd. (Arco Capital), a Cayman based fund, in connection with the EUR 103 million refinancing of Business Park Sofia (BPS), the largest office park in Southeastern Europe, with UniCredit Bank Austria AG and UniCredit Bulbank AD. The transaction closed in June 2015.
UniCredit Bank Austria AG and UniCredit Bulbank AD have jointly underwritten a EUR 103.3 million senior facility to refinance BPS, with Arco Capital acting as fund sponsor.
The facility is being jointly provided by UniCredit Bank Austria AG and UniCredit Bulbank AD as mandated lead arrangers and underwriters. UniCredit Bulbank AD is acting as facility and security agent, account bank, and hedge provider of this transaction.
The BPS office complex consists of fourteen Class A modern buildings, located in a prime location for business in Sofia. The total built-up area is 187,000 m² and is fully leased to more than 150 international tenants and accommodating more than 11,000 employees. The business park comprises more than fifty percent of Sofia's central business district currently leased Class A office space. Also, further development of buildings and infrastructure within the park is under consideration.
Leon Stephenson, finance partner at Reed Smith, commented:
“We are delighted to have supported long-standing client Arco Capital in the refinancing of leading business park, Business Park Sofia. This represents one of the largest real estate financing deals that has ever been completed in Bulgaria. This has further cemented our relationship with Arco Capital and also illustrates our market leading position in emerging markets, particularly across Central and Eastern Europe and Africa.”
The Reed Smith banking and finance team advising Arco Capital was led by Leon Stephenson (Partner), Iva Philipova (Senior Associate) and Helena Clarke (Associate). The Reed Smith team worked closely with Wolf Theiss as Bulgarian counsel, Appleby as Cayman counsel and Vassallo as Maltese counsel to refinance the borrower’s existing indebtedness which consisted of three separate financings, including a loan which was part of the Deco 14 – Pan Europe 5 securitisation.
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