Optimistic Deutsche Bank writes €3bn of deals in 2012

London and Paris deals help bank notch up better-than-expected total

Deutsche Bank completed €3bn of new real estate financing this year, in between 15 and 20 deals.

The investment bank, which has stuck with property through-out the downturn, is believed to have had a better-than-expected 2012 and to be optimistic about demand next year.

In the first half of 2012 the majority of business carried  out by the 25-strong European commercial real estate team was in London and Paris.

In London, the bank arranged £98m of finance for Italian investor Sorgente’s acquisition of Queensberry House in Mayfair, where the debt was placed with M&G and AXA.

Also in Mayfair, Deutsche Bank financed Brockton Capital’s acquisition of a Curzon Street block to be redeveloped as housing, while it provided senior debt alongside mezzanine in a £110m refinancing of 120 Holborn.

After re-opening the CMBS market last year as advising bank on Blackstone’s Chiswick Park securitisation, the German bank structured and distributed the £210m Merry Hill and €754m Florentia CMBS deals in 2012.

Headed by Gad Caspy, the London real estate finance team has focused on finding and structuring CMBS and loan investments that appeal to a growing group of European and international investors attracted by the risk and return profile of high-quality real estate.

In the second half of 2012, the bank is thought to have seen a willingness on the part of these investors to invest more widely in terms of assets and locations, a trend it believes will continue into next year.