Luminor Bank helped bring the loans of a large real estate company back to Estonia
Luminor Bank has provided an €85M loan to the large real estate developer and manager Capfield OÜ, in order for the company to bring its previous loans back to Estonia. According to Monika Kallas, Head of Corporate Banking at Luminor, Capfield, the owner of several large shopping centres in Estonia, has done well despite the current situation caused by the corona virus.
Capfield OÜ, the owner of commercial real estate operating in Estonia, mainly uses the loan received from Luminor to refinance its previous loan received from Nordea Bank. The loan to Capfield is secured by the company’s portfolio of shopping centres with a total value of €183M.
Monika Kallas, Head of Corporate Banking at Luminor, said that this is an important strategic real estate segment for Luminor. “Capfield’s market position is strong despite the corona pandemic. Their shopping centres are in good condition, in excellent locations, the portfolio is diversified, and includes strong anchor tenants. Supporting companies is one of Luminor’s priorities, and through Capfield we indirectly also support the shopping centres’ tenants,” Kallas said. In addition to the loan, the company is also offered a full package of Luminor’s banking services.
Capfield’s CEO Ruben Gornischeff was pleased that one of Estonia’s leading banks trusts them and considers the company’s centres to be strong and sustainable even in the current turbulent market situation. “With the issuance of this loan, the strength of Capfield’s portfolio has been thoroughly tested, which shows that we’ve made the right decisions actively managing our centres. It’s also a sign of trust in our tenants, whose strength and willingness to act are highly valued both by us and Luminor,” he added.
Capfield OÜ is a commercial real estate developer and owner operating in Estonia. Among others, it’s portfolio includes Tondi Selver, Lasnamäe Bauhaus, Pärnu Maxima XXX, Mustakivi Prisma, Nautica Keskus, and Lasnamäe Centrum. The total leasable area of the centres exceeds 80,000 square metres. 65 percent of the portfolio consists of large anchor tenants, including well-known local and international brands such as Bauhaus, Maxima, Prisma, Rimi, Selver, SportsDirect, Apollo bookstores, and many others.
Luminor is the third largest financial services provider in the Baltics with 940,000 customers and 2,500 employees. As of the end of March, 2020, its market share in the Baltics is 16% in deposits and 18% in loans. The bank’s equity amounts to €1.6B, which ensures Luminor a capitalization at the level of 20.5% with Tier 1 capital (CET1).