Real Estate Capital commentary
- The cheapest debt across Europe is still to be found in Germany, according to investment manager Tristan Capital Partners. It financed €190.5m of purchases of three shopping centres in Austria and Germany, plus a Berlin office, with German pfandbrief banks at an average margin of around 180- 185 basis points.
- All of the loans carried a 60-65% loan-to-cost ratio over five years. Tyndaris Real Estate, led by two former Deutsche Bank bankers, has made its third mezzanine loan – a €64m, four-year facility secured against a three-strong German office portfolio.
- Aalto Invest recently made its first bilateral loan, financing three UK regional offices for Benson Elliot. The £60m, five-year facility at a 65% loan-to-value ratio is Aalto’s largest to date. The investment manager entered senior debt investing last year and had taken participations in loans only until now.
- Debt availability for UK assets outside central London continues to increase, while strong sponsors (Orion, Ivanhoe Cambridge/ Grupo Lar) sourced debt in Spain and Delin Capital in the Netherlands, where liquidity is starting to improve.