The opportunistic investor issued a mezz loan of around €20m for the refinancing of Madrid’s Islazul shopping centre. Bayside’s position sits between 50% and 70% LTV in the overall capital stack.
Owners Ivanhoe Cambridge and Grupo Lar secured €97.5m of five-year senior debt from West Immo, Natixis and BAWAG at the turn of this year. The senior loan’s LTV reflected 50% and priced at 425 basis points.
West Immo and Natixis were existing lenders on the matured facility, while BAWAG replaced M&G Investments. West Immo provided €33.45m; the other two lenders each provided €32m.
Bayside declined to comment on the deal but the group’s head of European real estate and asset-backed investments, Ahmed Hamdani, said: “We do like Spanish retail”.
Bayside, owned by HIG Capital, has €500m of equity from a global fund, a €1bn European distressed fund – closed in April 2013 – as well as other sources of equity.
At 969,000 sq ft, Islazul on Madrid’s southern outskirts, is the biggest shopping centre in the city.