April 2014 Issue

    Month: April
    Year: 2014

    Back to Print Editions

    Investor presence adds weight to conference bubble

    MIPIM’s reputation in some quarters as a champagne-fuelled jolly in the sunshine had subsided in the aftermath of the global financial crisis, for obvious reasons. After a record 29,318 attendance in 2008, 2009 was the year delegate numbers fell off a cliff and the event remained a more sober affair in the following two years. […]

    Blackstone’s Ocean makes a play for Italy’s Atlantic

    Blackstone is seeking more exposure to the recovering Italian property market by making a bid for a listed fund. Ocean Realty, a Blackstone subsidiary, has launched a €151.7m takeover offer for the entire shares of mutual fund Atlantic 1. The fund owns a mixed portfolio of properties including Carrefour supermarkets and the headquarters of oil […]

    People – April 2014

    Schlüter leaves Hatfield Philips Mathias Schlüter, Hatfield Philips International’s managing director, is leaving the firm. He headed the business from 2011 until this January, when Blair Lewis took over as chief executive officer. The firm said Wilhelm Hammel, existing director of strategic and business development in Germany, will join the firm’s senior management team, while […]

    Indirect investment market: Jones Lang LaSalle market commentary

    UK market overview Average secondary market pricing across all UK sectors continued to improve in February, moving closer towards net asset value by a further 0.21%, to an average 0.76% discount to NAV, writes Ashley Marks. The improved pricing was driven by both the balanced and office sectors, which remained constrained due to demand outstripping […]

    Recent property lending deals

    Liquidity in European debt finance markets continues to increase. One sign is the rising number of large loan underwritings by single banks, often followed by syndication to a small group of lenders/investors. A year ago £100m was a large underwriting for one bank; now it is more like £300m. For example, Morgan Stanley underwrote a […]

    Bayside Capital: Bayside view covers lenders’ troubled European waters

    After making a splash by nabbing Spanish bad bank Sareb’s first big portfolio sale, the distressed asset investor is pursuing deals in a number of “dislocated” banking markets, writes Lauren Parr

    Counterparty risk rules make hedging grow more thorny

    Need for providers to have high credit ratings is making swaps more costly, writes Alex Catalano

    Harsh CMBS treatment could punish institutional investors

    CMBS given higher risk weighting under proposed rules for insurance firms, reports Lauren Parr

    Vision of a safer debt market calls for new focus on values

    It’s a safe bet that responses so far to the seven recommendations in last October’s A vision for real estate finance in the UK report will have been mixed. The draft report was issued by the ad-hoc Real Estate Finance Group (REFG), which was sponsored by the IPF and chaired by Grosvenor’s finance director Nick […]

    Regulation: Banks set for real estate purge to pass ECB’s health check

    Asset and loan sales likely ahead of stress test for European lenders’ books, reports Alex Catalano

    Demand is there, but lack of supply shuts off CMBS tap

    CREFC seminar reports appetite for CMBS but a lack of suitable collateral, writes Jane Roberts

    MIPIM 2014: Boom is in the air as equity and debt for property rockets

    MIPIM delegates said wave of equity and cheaper debt is fuelling recovery, reports Jane Roberts

    Lenders splash out on big deals as liquidity makes a comeback

    Evidence that liquidity is returning to the debt markets is piling up. One indicator, admittedly not very scientific, is that Real Estate Capital has been running two pages of new lending deals instead of one for the past few months. Another is that only nine months ago £100m was a large ticket for a single […]

    Bayside goes Dutch for more distressed Netherlands buys

    US investor lines up two Dutch deals plus NPL buys in Italy and Romania

    Brunsberg moves up to Euro head at GE Capital RE

    Ellen Brunsberg, head of GE Capital Real Estate’s UK business, has been promoted to CEO for Europe. Brunsberg takes over from retiring European CEO Lennart Sten and will continue in her role as head of GE’s UK property senior lending business, which she took over a year ago. The company plans to expand its senior lending […]

    Blackstone puts 40% of BREDS ll’s capital to work

    Blackstone Real Estate Debt Strategies has now invested 40% of its second, $3.5bn debt vehicle. Up to half of BREDS II’s equity can be invested in Europe and the European BREDS team, led by Joe Pedlow, started investing at the beginning of last year. The fund’s niche investment focus is complex, higher-yielding transactions. One of […]

    La Française and Forum set to launch Euro debt vehicle

    French firm seeks €350m for second debt venture, this time with Foru

    SocGen restarts foreign lending with £500m UK target

    Société Générale has returned to real estate lending outside France and has a £500m-plus target for the UK this year. The French bank quit new lending in the UK and continental Europe in late 2011. It subsequently sold off almost €3bn of legacy property loans as it sought to meet European Central Bank Core Tier […]

    Wells Fargo flies in Bottles to refresh real estate lending operation in UK

    US bank Wells Fargo is moving Scott Bottles, a senior member of its real estate banking group, to London to be head of credit. He is expected to join the Covent Garden-based UK real estate lending team this spring. The move will enable new loan decisions to be made more quickly, giving Mike Acratapulo’s origination […]

    Big bidder pack chases rare German loans sale by Publity

    Non-performing loans package attracts 23 domestic and foreign bidders

    German lending study wins backers

    The second ‘IREBS’ German debt study has attracted a raft of new sponsors. INREV, the Commercial Real Estate Finance Council Europe and the German Property Federation (ZIA) are supporting the 2014 survey. They join the debut report’s sponsors, who include Real Capital Analytics, DTZ, JLL and Bulwiengesa. The survey, expected to be published in October, […]

    M&G bullish about returns for twin junior debt vehicles

    Manager seeks high single digit and double digit returns for £1.3bn funds

    Lloyds recruits for distribution drive

    Lloyds Banking Group is beefing up its global real estate lending arm in anticipation of distributing more senior debt this year. Head of global corporate real estate John Feeney has hired Andrea Pittaluga as a relationship director with a remit to focus on private equity and institutional fund manager customers. Pittaluga, previously a real estate […]

    Internos ramps up fund asset disposals

    Internos Global Investors is stepping up sales of assets from 2006-2007 vintage funds, taking advantage of improving pricing on the back of the wider availability of debt. The investment manager is selling all the assets in German Retail Property Fund, one of seven closed-ended funds and mandates it took over managing when it acquired GPT […]

    CBRE GI launches follow-on ESCF fund

    CBRE Global Investors has launched the closed-ended European Shopping Centre Fund II, which will buy dominant retail centres on the Continent. The eight-year fund will buy core-plus investments with opportunities to enhance income, continuing the investment strategy of the CBRE European Shopping Centre Fund, which has agreed it final investments. Florencio Beccar, the fund’s manager […]

    Rights issue and bank debt fund intu’s Westfield buys

    Three bank facilities and £488m rights issue back UK shopping spree

    Consultation may offer PAIFs better tax treatment

    The UK fund industry has welcomed the government’s intention to consult on stamp duty land tax seeding relief, announced in the 19 March Budget. The consultation will cover the SDLT treatment of seeding property authorised investment trusts (PAIFs) and the wider SDLT treatment of tax-transparent funds. At present, the 4% tax is payable when a […]

    Kildare picks up O’Flynn loans from Lloyds

    Lloyds Bank has sold a portfolio of loans made to Irish developer Michael O’Flynn, with a face value of about €100m, to Ellis Short’s private equity firm Kildare Partners. The loans are backed by properties in Cork. NAMA is selling another portfolio of loans made to O’Flynn in a process called Project Tower, managed by […]

    AXA makes it four in Natixis’s club to finance CBRE GI French portfolio

    Natixis has completed a four- lender syndicate for a €666m portfolio of 12 French shopping centres, after underwriting the whole €406.5m funding last year. The assets are managed by CBRE Global Investors on behalf of the CBRE Retail Property Fund France Belgium. Jerome Lacombe, RPFFB’s chief finance officer, said: “It was important to have a […]

    Three lenders fund ADIA Paris assets

    Helaba, pbb Deutsche Pfandbriefbank and Allianz provide €300m at highly competitive margin

    Pbb Deutsche Pfandbriefbank boosts property lending ahead of 2015 sell-off

    Pbb Deutsche Pfandbriefbank increased its real estate lending business by 43% last year, as management continues the preparations for the government- owned bank’s sale in 2015. New property lending rose from €4.9bn to €7bn, with €5.3bn of that figure comprising new commitments and €1.7bn extensions of existing loans. The number of loans made also increased, […]

    Big lenders vie to go it alone on €430m Milan refinancing

    Goldman Sachs, Aareal and BNP Paribas are among bidders to fund office campus scheme, as banks look to take on big-ticket loans to sell on later

    IPD and CBRE urge lenders to improve risk management

    Property lenders should carry out regular, external open-market valuations at whole portfolio asset level that can be submitted with other data for analysis to manage risk, IPD and CBRE have recommended. They are seeking to sell a commercial, best-practice model to lenders. Their proposal comes as the Real Estate Finance Group debates the challenge of […]