ING and JP Morgan top Dealogic’s European CRE syndication league tables

ING and JP Morgan have been ranked as the most active banks in the syndicated European real estate loan market during 2015 by financial information provider Dealogic.

ING and JP Morgan have been ranked as the most active banks in the syndicated European real estate loan market during 2015 by financial information provider Dealogic.

The data, which is supported by the Commercial Real Estate Finance Council (CREFC) Europe, shows that loans with a volume of €74.7 billion were syndicated in 212 deals across the EMEA region during 2015, the highest volume since €76.7 billion in 2007 and up 58 percent from 2014.

Excluding loans written to REITs, which are typically not secured by property, real estate loans with a total volume of €32.9 billion across 147 deals were syndicated last year, up almost 50 percent from 2014. The number of non-REIT syndicated deals in 2014 was 86.

ING was the most active bank in the market for non-REIT loan syndication, while JP Morgan topped the tables when loans to REITs were taken into account. The US bank’s underwrite of a €6.25 billion bridging loan to Deutsche Annington in January 2015 pushed up its total volume. The full league tables can be viewed below.

HSBC and Landesbank Baden-Württemberg (LBBW) also featured in the top reaches of the tables, with HSBC ranked as the most active lender in the UK syndication market.

In the league tables which excluded loans to REITs, ING was the most active book-runner with €3.521 billion over 21 deals, followed by BNP Paribas with €1.976 billion across nine deals and LBBW with €1.935 billion across three deals.

ING also topped the table for mandated lead arrangers in non-REIT financings, with €3.239 billion across 28 deals, followed by HSBC with €2.527 billion across 23 deals and LBBW with €2.338 billion across six deals.

Including loans to REITs, JP Morgan emerged as both the most active book-runner and mandated lead arranger. In the book-runner stakes, JP Morgan was involved in the syndication of €10.232 billion across just three deals. In second place was Bank of America Merrill Lynch with €6.172 billion across 13 deals, followed by ING with €4.656 billion across 26 deals.

dealogicAs mandated lead arranger including loans made to REITs, JP Morgan participated in €8.382 billion across 11 deals, followed by HSBC with €5.072 billion in 34 deals and ING with €4.971 billion in 45 deals.

The majority of the deals were done in the UK, with €20.9 billion across 59 deals, accounting for 28 percent of market share. Germany and France posted volumes of €19.9 billion and €12.9 billion respectively.

HSBC was the most active bank in the syndication of UK loans, with €3.132 billion in 20 deals as mandated lead arranger, followed by Lloyds with €1.904 billion in 12 deals and RBS with €1.522 billion in 14 deals.

In France, Credit Agricole CIB was the most active mandated lead arranger, with €2.798 billion in 26 loans, followed by Natixis with €2.477 billion in 24 deals and BNP Paribas with €1.502 billion in 18 loans.

Last year’s largest deal excluding REIT activity was a €1.4 billion loan to the French borrower, Carmila SAS. BNP Paribas, Credit Agricole CIB, CM-CIC, HSBC, ING, Natixis, RBS and Societe Generale participated in the five -year deal which extended a 2013 loan. The deal comprised a €350 million revolving tranche and a term loan of €1.05 billion.

Also among the largest syndicated deals was the €856 million financing of Canary Wharf Group’s Wood Wharf in London last March by Barclays, HSBC, Lloyds and Qatar National Bank.

The EMEA syndicated real estate finance league tables were launched last year by Dealogic in an effort to improve transparency across the CRE lending market. Dealogic gathered data from the real estate units of 20 banks.

“This is a valuable tool for all stakeholders: arrangers, participants and regulators alike. We think 2016 may generate the same levels of activity as more assets change hands. Refinancings will also trigger some more volumes,” said Jean-Maurice Elkouby, head of REF syndications at ING.

“These league tables are an indicator of the property sector’s commitment to transparency and collaborative working and underline how much progress has been made since the GFC in realigning our sector to minimize risk and maximize the sharing of data,” commented Steve Willingham, managing director and head of EMEA real estate finance at HSBC.

“Clearly, the greater liquidity there is in a loan, the tighter pricing that can be achieved, and the more market standard that terms develop, the more liquid it becomes. The transparency we are trying to promote here is crucial if we are to achieve the kind of sensible regulation we need to support the sector’s growth. Attracting a rich diversity of investors into real estate is positive not just for banks but for funds, developers and borrowers across the board,” added Willingham.

“For [LBBW] it is a great confirmation of the strong relationships we have with institutional CRE investors as well as of our ability to access liquidity in the secondary markets through our platform due to the quality of our loans and the reputation we have with our syndicate partners,” said Frank Jeschke, ‎head of portfolio management at LBBW.

“The importance of the syndication market for commercial real estate finance can be seen clearly from Dealogic’s tables,” said Peter Cosmetatos, chief executive of CREFC Europe. “Regulatory pressure on some banks to distribute, broad appetite for commercial real estate risk and returns, and the absence of an effective securitisation market are all contributing to these healthy figures.”

Syndicated Real Estate Finance** Loans Bookrunner* Ranking- Full Year 2015
Rank Bookrunner Value €m Deals % Share
1 JPMorgan 10,232 3 20.8
2 Bank of America Merrill Lynch 6,172 13 12.5
3 ING 4,656 26 9.5
4 HSBC 3,391 11 6.9
5 BNP Paribas 3,224 16 6.5
6 Natixis 3,085 22 6.3
7 Barclays 2,478 10 5.0
8 Credit Agricole CIB 2,373 16 4.8
9 LBBW 1,935 3 3.9
10 RBS 1,813 9 3.7
Total Market 74,772 212 100

 

Syndicated Real Estate Finance** Loans MLA* Ranking- Full Year 2015
Rank Mandated Lead Arranger Value €m Deals % Share
1 JPMorgan 8,382 11 11.2
2 HSBC 5,072 34 6.8
3 ING 4,971 45 6.7
4 Credit Agricole CIB 4,175 45 5.6
5 SG Corporate & Investment Banking 4,166 25 5.6
6 BNP Paribas 4,063 44 5.4
7 Bank of America Merrill Lynch 3,732 16 5.0
8 Natixis 2,965 32 4.0
9 UniCredit 2,951 17 4.0
10 LBBW 2,338 6 3.1
Total Market 74,772 212 100

 

Syndicated Real Estate Finance** Loans (Exc. REITS†) Bookrunner* Ranking- Full Year 2015
Rank Bookrunner Value €m Deals % Share
1 ING 3,521 21 19.5
2 BNP Paribas 1,976 9 11.0
3 LBBW 1,935 3 10.7
4 Bank of America Merrill Lynch 1,489 10 8.3
5 Natixis 1,385 14 7.7
6 HSBC 1,353 7 7.5
7 SG Corporate & Investment Banking 1,308 8 7.3
8 Mashreqbank PSC 908 3 5.0
9 Credit Agricole CIB 833 8 4.6
10 Barclays 552 3 3.1
Total Market 32,887 147 100

 

Syndicated Real Estate Finance** Loans (Exc. REITS†) MLA* Ranking- Full Year 2015
Rank Mandated Lead Arranger Value €m Deals % Share
1 ING 3,239 28 9.9
2 HSBC 2,527 23 7.7
3 LBBW 2,338 6 7.1
4 BNP Paribas 2,288 24 7.0
5 Credit Agricole CIB 1,977 25 6.0
6 SG Corporate & Investment Banking 1,864 14 5.7
7 Bank of America Merrill Lynch 1,599 12 4.9
8 Natixis 1,435 18 4.4
9 Lloyds Banking Group 1,313 8 4.0
10 RBS 833 7 2.5
Total Market 32,887 147 100

 

UK Syndicated Real Estate Finance Loans Mandated Lead Arranger Ranking- Full Year 2015
Rank Mandated Lead Arranger Value €m Deals % Share
1 HSBC 3,132 20 14.9
2 Lloyds Banking Group 1,904 12 9.1
3 RBS 1,522 14 7.3
4 Barclays 1,369 11 6.5
5 BNP Paribas 1,345 9 6.4
6 Wells Fargo 1,222 7 5.8
7 Bank of America Merrill Lynch 1,205 7 5.8
8 ING 1,202 6 5.7
9 Santander 1,178 11 5.6
10 Citi 749 3 3.6
Total Market 20,964 59 100

 

France Syndicated Real Estate Finance Loans Mandated Lead Arranger Ranking- Full Year 2015
Rank Mandated Lead Arranger Value €m Deals % Share
1 Credit Agricole CIB 2,798 26 21.7
2 Natixis 2,477 24 19.2
3 BNP Paribas 1,502 18 11.6
4 SG Corporate & Investment Banking 1,231 14 9.5
5 ING 1,213 10 9.4
6 CM-CIC 993 12 7.7
7 HSBC 556 7 4.3
8 RBS 471 3 3.6
9 Bank of China 312 1 2.4
10 Barclays 296 2 2.3
Total Market 12,920 50 100
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