CAPITAL WATCH: Recent lending deals Feb/March 2016

Commercial real estate lenders were particularly active in Continental Europe during March. Dutch bank ING Real Estate Finance, which was Europe’s most prolific lender in 2015, continued its lending drive. The bank originated a €420 million loan to AEW Europe to finance the French assets within the firm’s €2 billion pan-European Logistis fund.

Elsewhere, ING teamed up with BNP Paribas to finance the Galleria Verde shopping scheme to the south of Milan for a joint venture between Dutch firm Eurocommercial Properties and retailer Finiper with a five-year 62.5 percent loan-to-value loan. ING and Natixis also wrote a €150 million loan to finance the ‘Great Beauty’ portfolio of three Rome properties for Morgan Stanley’s Sapphire Fund. BNP Paribas and UBI Banca also bought into the Great Beauty deal.

Blackstone continued to finance its European logistics drive during March. The firm’s Logicor unit sourced €575 million of debt from Bank of America Merrill Lynch to refinance the Certeum portfolio of Finnish logistics properties. Logicor bought a controlling stake in Certeum last December. The five-year financing reflected a 62.5 percent LTV priced around 300 bps, according to CoStar. The loan is likely to be either syndicated or securitised.

Deutsche Pfandbriefbank and Deutsche Hypo jointly wrote a significant development loan. The pair have provided €267 million to fund Perella Weinberg’s development of an office complex in central Frankfurt. The Marieninsel development will comprise two buildings totalling 57,000 square metres in among the city’s prime office towers.

In the loan-on-loan market, Goldman Sachs provided a £269 million loan to CarVal Investors to finance its portion of the Project Poseidon loan portfolio, according to Estates Gazette. The Irish loan book was sold by Lloyds Banking Group last July and represented the rump of its Irish exposure. Goldman Sachs, CarVal and Bank of Ireland bought £2.6 billion of loans for £827 million.

In London, Deutsche Pfandbriefbank provided a £75 million loan to Tishman Speyer Properties to finance its acquisition of the Economist Plaza office building in the St James’ area of the capital. The complex has been home to The Economist’s editorial staff since 1964 and was reportedly sold for £130 million in February.

In late February, Derwent London raised £105 million through the issue of an unsecured US private placement. Three US institutional investors bought the bonds. The deal allowed Derwent London to lock in long-term finance; a £30 million tranche had a 12 year duration, priced at 3.64 percent, with a £75 million tranche due to mature in 15 years and priced at 3.57 percent.

Click here to view recent lending deals for Feb/March 2016.

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