Real Estate Capital market commentary
• British Land put together a club of seven banks that provided a new, £485m revolving credit facility at a record low margin for this cycle of 90bps — even skinnier than the 105bps revolving credit facility arranged by Great Portland Estates in October last year
• Citi continued its loan-on-loan push with a £500m financing for Cerberus’s purchase of Nationwide’s £1bn Project Carlisle nonperforming loans. It was Citi’s first deal for Cerberus in Europe’s NPL market, as it looks to land new clients, having previously arranged NPL finance for Lone Star and Oaktree.
• Lone Star financed its purchase of the Jury’s Inn hotel chain with a £476m Bank of America Merill Lynch loan. Earlier in the cycle some banks had steered clear of operational assets but enthusiasm has returned for those providing steady cashflow and higher margin lending opportunities.
• Wells Fargo followed up a busy 2014 in the City of London with a £138m refinancing of Brookfield’s Moor Place. The deal for the 226,000 sq ft building by Moorgate station follows transactions last year between the lender and Blackstone for its purchase of Alban Gate, and Oxford Properties for its development of London Wall Place.
• Lenders’ desire to finance transactions in the European private rented sector has been apparent in the past month, with Deutsche Pfandbriefbank providing D. Carnegie & Co with a €308m loan to refinance its Stockholm portfolio, while HSBC provided a £320m facility to Bruce Ritchie’s UK company, Residential Land.
• In the UK, Aviva Commercial Finance refinanced The Rock shopping centre in Bury near Manchester for Kennedy Wilson and Fairfax. Its £53m loan valued the centre at £88m. The duo bought the asset in December 2012 as part of their purchase of the Project Forth non-performing loan portfolio sold by Lloyds. The original loan from Bank of Scotland to developer Thornfield was £270m.
• Allianz completed its first deal in Spain with a €133.6m loan to fund Spanish REIT Merlin Properties’ acquisition of the Marineda shopping centre in La Coruna. The insurer is looking to expand its presence outside its core markets of France and Germany and is also considering entering the Italian market.
• Helaba, ING and Deutsche Pfandbriefbank all completed deals in eastern Europe, where the lending market has started to become more competitive and domestic banks are also becoming more active. The largest of the three financings was ING’s €193m loan to TriGranit, to refinance its Bonarka shopping centre in Krakow.
Click to see February and March 2015 deals: Capital watch: Recent lending deals