Each month, Real Estate Capital compiles data on recent lending deals in the UK and continental European real estate debt markets. A rundown of transactions from mid-September to mid-October can be found by clicking on the below images.
– M&G Investments wrote a £517 million (€579 million) whole loan for the development of 1 Grosvenor Square in central London. The loan, invested and held by funds managed by M&G, was provided to the UK branch of Indian real estate firm Lodha Group. The residential development is expected to be completed in December 2019 and will provide 48 residential units with on-site leisure amenities. In May Lodha secured a £290 million loan from Cain Hoy for another London scheme, Lincoln Square.
– The beginning of the autumn season has been marked by Singapore’s Global Logistics Properties’ (GLP) $2.8 billion acquisition of European logistics platform Gazeley from Brookfield. The purchase will be financed with $1.2 billion (€1 billion) of long-term, low-cost debt. As Real Estate Capital went to press a number of lenders were said to be looking at this financing opportunity.
– Allianz Real Estate provided a €300 million loan to finance ‘Window’, a prime office building in Paris’ La Défense business district. The 10-year senior loan was secured by Oxford Properties, the real estate arm of Canadian pension fund OMERS. The loan is understood to have a LTV ratio of around 60 percent.
– Aareal Bank provided a £330 million (€375 million) senior financing of London-based investor Henderson Park’s debut deal in the UK hotel market. The debt packaging supports the firm’s £500 million acquisition of the London and Birmingham Hilton Metropole hotels. The loan has a term of seven years and reflects a loan-to-value ratio of 66 percent. Henderson Park is proving to be an active investor in Europe. Also this month, the firm opted for €34 million of debt from Deutsche Bank for its maiden Madrid deal
– Listed Italian real estate company Beni Stabili launched €300 million of senior unsecured bonds, in a push to diversify its funding strategy. The seven-year bond carried a 1.625 percent fixed annual coupon. The notes were priced at a spread of 115 basis points over the reference swap rate.