CAPITAL WATCH: Recent lending deals June 2016

• There was noticeably more activity on the continent than in the UK ahead of the 23 June EU referendum vote as Real Estate Capital went to press. The other clear trend is the preponderance of refinancing over acquisition finance in recent weeks and months.

• The largest single underwrite to close was Aareal’s €368 million, 10-year facility for a portfolio of prime German logistics assets. An increasing number of borrowers seem to be taking advantage of rock-bottom interest rates to replace shorter-maturity loans with longer ones; banks are having to compete with insurance companies to give their clients what they want. Aareal’s other large deal was in another of its areas of expertise, hotels, where it wrote two 10-year loans for refinancings for long-standing client PPHE Hotel Group.

• The biggest club was for a Nordic deal. Finnish property company Sponda, which owns €3 billion of Finnish and Russian assets, worked with a club of seven banks for a €600 million, refinancing. German bank Helaba joined the Nordic lender line-up after opening a Swedish office this year.

• In the UK, the largest deal was the £500 million bridge facility that Deutsche Bank and HSBC extended to existing client Intu Properties secured on Merry Hill shopping centre in the West Midlands, at an all-in cost of about 3 percent. The REIT which owns regional malls in the UK and Spain, acquired the 50 percent interest it didn’t already own from Australia’s Queensland Investment Corporation for £410 million, taking its ownership to 100 percent. The two banks had provided a £191 million bridge, which was due to expire in 2017, when Intu bought its first 50 percent in 2014.

• ING Real Estate Finance had another busy spell, closing a Dutch logistics asset financing and two Italian financings for TH Real Estate. It also emerged that the bank had closed the syndications of large loans to AEW and Andrew Tan, purchaser of Madrid’s Torre Espacio.

• Allianz wrote its second loan in Austria, €154.3 million for the Korean investors advised by CBRE GI which bought Vienna’s 39-storey ZD tower from Signa.

• The only example of loan-on-loan finance was Citi’s agreement to finance Oaktree Capital Management. Oaktree’s was the winning bid to NAMA to scoop the ‘Ruby’ and ‘Emerald’ non-performing loan portfolios which had a face value of €4.7 billion. The NPLs are mainly in Ireland with about 20 percent of the assets in Germany and sold at a deep discount.

Click here to view a table of recent lending deals in June 2016.

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