Prague-based commercial real estate developer CTP closed a deal with a consortium of three banking groups for a 7-year loan of €1.9bn to close the largest real estate transaction ever in Central and Eastern Europe (CEE), the company reported in its press release on June 25.

The banks involved in the consortium include Erste Group and Ceska Sporitelna, UniCredit Bank S.p.A., UniCredit Bank Czech Republic and Slovakia, Société Générale and Komercni Banka.

“We are pleased to confirm our continued cooperation and deepened relationships with our core banking partners in concluding this milestone syndicated loan transaction. This deal secures our financing in the Czech Republic for the mid-term and will help us significantly in achieving our next goal of growing to 10mn square metres” said CTP Group CEO Remon Vos, as quoted in CTP press release.

The project comprises of 200 buildings, covering 2.7mn square meters of industrial space, and is to be completed in the next 18 months. According to CTP CFO for the Czech Republic Zdenek Raus, the new loan, which consolidates 40 existing loan agreements significantly simplifies the company’s previous financing arrangements, securing funding of its industrial portfolio over the mid-term.

“This deal sets a new benchmark for real estate financing in Central and Eastern Europe in terms of size and complexity. It underscores the leading position of Erste Group in the Central Europe region and Ceska Sporitelna in the Czech Republic,” added Head of Real Estate Financing at Erste Group Patrick Zehetmayr and the member of the Ceska Sporitelna board Pavel KracMarch

As Société Générale Corporate & Investment Banking Jean-Pierre Cherbit and Komercni Banka board member David Formanek noted this deal sets a new standard for financing in Central and Eastern Europe.

CTP is a commercial real estate development company founded in the Czech Republic in the late 1990s by Ramon Vos and Eddy Maas. Its CTPark Network includes reportedly the largest integrated system of premium business parks in Central Europe. CTP also owns stand-alone office projects including Vlnena, Spielberk Office Centre, Ponavka, Domeq in Brno, and IQ Ostrava.