HSH Nordbank funds Sunrise retail portfolio

HSH Nordbank has provided a three-year facility with a loan-to-value of 80% to Sunrise Properties for its Sunrise portfolio of German retail assets.

The Sunrise portfolio comprised of 127 German shopping centres when Sunrise Properties’ €360m purchase was agreed last December. About €150m of the portfolio has been sold since then, including the Gloria Galerie retail complex in the centre of Berlin. The loan amount could not be learned in time for publication.

Sunrise Properties said strong competition to finance the portfolio from a range of investment banks, pension funds and alternative lenders helped to achieve the 80% LTV.

“Others were at the same level or plus-or-minus a negligible amount,” said Jacob Lyons, director and shareholder of Sunrise Properties. “What made the  difference is HSH Nordbank took the initiative and went the extra mile to prove commitment and certainty of execution.”

Investment vehicle Sunrise Properties is owned by Lyons, Claudius Meyer, Stephen Benson and Torsten Hollstein who are also shareholders of CR Investment Management. CR Investment Management is the asset manager of the portfolio.

The Sunrise portfolio sale was the result of defaults on two loans totalling €375m, known collectively as the Orange loan, made to previous owner Treveria in 2005. Dutch bank ABN Amro supplied most of Orange.

ABN Amro securitised Orange, along with several other loans, into the Talisman 6 CMBS, which closed in April 2007 with notes totalling just over €1bn. Five other loans, all in special servicing, remain in Talisman 6.

Debt advisory firm Hatfield Philips International, the special servicer on the defaulted Orange loan, instructed JLL to sell the Sunrise portfolio in August last year after Treveria lost the portfolio in 2012.

Sunrise was advised by CR Financial Solutions, HFS Helvetic Financial Services and Dentons LLP.