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Deutsche Bank, Tyndaris finance Italian resort with private securitisation

Deutsche Bank and alternative advisory firm Tyndaris have provided an €80 million refinancing of a five-star Italian resort through a private securitisation.

Deutsche Bank and alternative advisory firm Tyndaris have provided an €80 million refinancing of a five-star Italian resort through a private securitisation.

The five-year whole loan refinances the Borgo Egnazia resort, located in the southern Italian region of Puglia.

Borgo Egnazia, Puglia, Italy

Through the private deal, Deutsche Bank holds the €60 million A-note, while Tyndaris holds the €15 million B-note. Deutsche Bank has also retained an additional 5 percent interest in the whole loan for regulatory purposes.

The property is owned by the San Domenico Hotels Group, which is owned by the Melpignano family. The group’s president, Aldo Melpignano, is managing director of the resort. Among the group’s other luxury hotels is the San Domenico House in London’s Chelsea area.

Borgo Egnazia opened in 2010 and contains 155 rooms, 29 villas, a cooking school, beach club and the 18-hole San Domenico Golf Course. The resort hit entertainment headlines in 2012 when pop star and actor Justin Timberlake and actress Jessica Biel hired it for their wedding.

Although Deutsche Bank has been an active lender in Italy for some years, the deal is the first in the country for Tyndaris. London-based Tyndaris was founded in 2012. Its real estate business targets underwriting opportunities from €10 million in size and includes senior and whole loans, subordinate and mezzanine loans, as well as preferred and joint venture equity.

Tyndaris Real Estate is led by partner Clark Coffee, who was previously co-head of origination for Deutsche Bank’s European real estate business, where he established the bank’s €250 million mezzanine debt investment strategy.

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