Jane Roberts
French listed property company Société de la Tour Eiffel (STE) has signed a €210m revolving credit facility with four lenders to refinance existing debt and to expand.
BNP Paribas led the three-year RFC as mandated agent and joint arranger, alongside Crédit Agricole Ile de France, ARKEA Corporate & Institutional Banking and INVESTIMO.
Kennedy Wilson Europe Real Estate is to launch a second bond issue in a continuing drive to take advantage of the low cost of long-term senior debt.
The listed European investor announced the issuance of €300m of senior unsecured notes with a maturity of 10 years paying an annual fixed coupon of 3.25%.
Cain Hoy, the private investment company headed by former Heron director Jonathan Goldstein, is expanding its team after investing £1.3bn.
The company, which invests in both debt and equity, usually with partners, has made two hires in London and is looking to make a further senior hire in New York.
German student housing developer Deutsche Real Estate Funds, (DREF), has completed a promised increase in a bond it issued against its portfolio in the summer.
DREF increased the volume of the Deutscher Studenten Wohn Bond by €33 million, to €77m, via a private placement with German insurance companies, at a coupon of 4.675%.
Bank of America Merrill Lynch and Citi have closed the syndication of a €325 million Deutsche Interhotels loan in an oversubscribed deal, Real Estate Capital can reveal.
The syndication is one of a string that big banks are working on closing before the year end. Financial market volatility over the summer has not put off the deepening pool of banks, institutions and debt funds that want to buy CRE loans, they say.
M&G Investments has appointed senior originator Lynn Gilbert as head of senior real estate lending after the departure of Paul Dittmann.
Gilbert has stepped into the role which Dittmann had filled for the last four years since joining the insurance giant’s CRE debt investment team in 2011.
There were three clear takeaways from Real Estate Capital’s latest Europe Forum (see pp14-21), held in London a few weeks ago: banks are back; senior debt spreads have widened since the summer; and risk for property lenders is rising as the real estate cycle moves on.
Market jitters make some exits harder, but demand for CRE loans remains robust
Annual returns on five-year, senior UK commercial real estate debt are forecast to be 3.6% gross and 3.4% on a risk-adjusted basis at the end of Q3 2015, according to CBRE’s latest UK debt prospects quarterly forecast. This is a slight fall on Q2 2015, when returns were 3.8% gross and 3.7% risk-adjusted (see fig 1).