Real Estate Capital Commentary
North American banks Wells Fargo, Bank of America and Royal Bank of Canada are targeting more big UK deals after refinancing Maybourne Group’s super-prime London hotels. The Blackstone-arranged finance included almost £150m of mezzanine – at the mid 50s% in the capital stack – from three lenders, one of whom was Starwood, making an early investment for its new European debt fund, SEREF.
- UK banks backed two regional property portfolios, where finance has been harder to find, for regional office and industrial investor/developer Highcross, and Legal & General’s UK Property Income Fund.
Speculative development finance is even rarer, but last month, four banks provided the developer of the King’s Cross site with £250m for five residential and speculative office buildings there. Meanwhile, the Irish backers of Aldgate Developments raised two-and-a-half-year, high-margin money for a City fringe tower.