Valad Europe this month extended a facility to refinance its €1.1bn joint venture with Lloyds Banking Group. The refinancing extends the three-year facility put in place in July 2009 to December 2016.
Under the original restructuring, Valad wrote down the equity on assets secured against loans originally made by Bank of Scotland, after multiple loan-to- value covenant breaches. The assets were put into a new joint venture with Lloyds, where profits were to be used to pay down debt.
Valad said DUKE now comprises more than 100 UK and continental multi-let office, industrial and retail properties with 750 tenants. Since the vehicle was set up, Valad Europe has been acquired by Blackstone.
Last month, Valad raised €300m from Helaba, Deutsche Pfandbriefbank, BAWAG, Natixis and RBS to refinance an RBS and Helaba loan on the European High Income Fund.
Marty McCarthy, Valad chief executive officer for Europe, said the fund manager “has now refinanced all near-term loan expiries of any significant scale and we are looking at work-outs, single mandates and portfolio opportunities”. It has just lost a bid to manage the work-out of Dutch company Uni-Invest.