Deutsche Bank is financing the €160m acquisition of eight Spanish retail assets for GreenOak Real Estate and Grupo Lar in a further sign of lender interest picking up in Spain.
The ticket size is believed to be around €100m and the German bank is understood to have beaten several other investment banks to win the mandate.
John Carrafiell’s GreenOak teamed up with Spanish property manager Grupo Lar on behalf of a consortium of investors including US hedge fund the Baupost Group, to buy the secondary assets from Dutch-listed retail group Vastned in an all-cash deal in February. The portfolio is made up of seven shopping centres and one retail park, in Madrid, Barcelona, Alicante, Malaga, Murcia and Burgos. GreenOak and Grupo Lar jointly manage the properties.
International and domestic banks have returned to lending in Spain, where they can charge higher loan margins of between 400 and 600 basis points. Deutsche Bank started lending a year ago and in January bought a nominally-valued €100m commercial loan portfolio from SAREB.
Local lenders, are also active, for selective deals. Distressed investor Bayside Capital secured around €13m of finance at a loan to value close to 70% from local lender La Caixa for its January acquisition of the Parque Ceuta shopping centre, it has recently emerged. La Caixa was drawn to the financing because the 14,736 sq m asset is fully occupied.
Bayside itself took part in the refinancing of Ivanhoe Cambridge and Grupo Lar’s Spanish shopping centre, Islazul, alongside WestImmo, Natixis and BAWAG. Bayside provided €20m of mezzanine up to 70% LTV; the other lenders issued €97.5m of senior at 50% LTV, priced at 425 bps over Euribor.
Goldman Sachs has been financing transactions in the Spanish market for the last three years and in 2013 provided Orion €173.4m of refinancing (alongside M&G Investments) for its Puerto Venecia Shopping Centre and Retail Park in Zaragoza. Credit Suisse and Citi are also said to be interested in financing CRE in Spain.