Real Estate Capital market commentary
- Lending to alternative sectors represented a notable part of the UK deals that took place in June, as lenders spread beyond highly competitive areas of financing and move up the risk curve. Seven deals featured either residential, healthcare, student housing or hotels, several with a development angle.
- Lloyds’ £30m revolving debt facility for housing association Pocket Living to build affordable homes was a targeted move by the bank, while LaSalle Residential Finance’s £89m loan for the City North housing development in Finsbury Park marked the fund’s sixth deal.
- Laxfield Capital’s GIC-backed lending programme made its first loan since the strategy was launched nearly 18 months ago, to student housing provider Urbanest.
- Development finance is becoming more widely available, as demonstrated by Israeli lender Banque Hapoalim’s £80m financing of PPHE’s hotel development near London’s Waterloo Station. Wells Fargo has been selected to fund London Wall Place in the City, which has a large speculative element, with a £130m development loan.
- Loan-on-loan financing constituted much of international banks’ recent European lending, with JPMorgan, AIG and particularly GE Capital Real Estate taking part in large deals. Austrian bank BAWAG has stepped up its activity in both loan-on-loan and direct property-backed debt, in Europe and the UK.