CAPITAL WATCH: Recent lending deals May 2016

• The Children’s Investment Fund (TCI), the hedge fund founded by activist investor Sir Chris Hohn, made its first major UK real estate loan with a loan of up to £400 million to finance Almacantar’s Marble Arch Tower scheme in London’s West End. Real Estate Capital revealed that TCI beat the likes of Starwood and Lloyds to finance the £500 million-plus residential-led project at the western end of Oxford Street. TCI has been an active real estate lender in New York in recent years, lending to several Manhattan residential and hotel towers, but its emergence as the backer of such a large central London scheme has surprised many in the market.

• Also in the London market, ING Real Estate Finance and LBBW closed the financing of the Salesforce Tower, known to many as the Heron Tower, close to Liverpool Street Station. The banks provided a joint £400 million financing to the consortium of owners including Heron International. Around £200 million of the circa 60 percent loan-to-value facility is to be syndicated.

• Starwood Capital arranged a £158.1 million refinancing of an agency CMBS which Varde Partners issued at the end of 2015. The Magni Finance CMBS securitised a loan provided by Credit Suisse against a UK property portfolio and the notes were subject to a repurchasing agreement by the Swiss bank. Starwood retained a £35.1 million mezzanine strip through its listed European vehicle and the senior slice was placed with Morgan Stanley.

• In continental Europe, Bank of America Merrill Lynch (BAML) issued the second European CMBS of 2016. The Taurus 2016-2 DEU deal was the €229.9 million securitisation of a loan provided to Canadian investor Dream Global REIT to nance its German portfolio. The AAA notes priced at 128bps, towards the high end of indicative pricing. BAML was also responsible for the first European CMBS of 2016, which was also secured on German property.

• Listed logistics specialist SEGRO agreed to a refinancing of €780 million of debt with a group of ten banks. The rm secured a €610 million revolving credit facility which replaced and extended a €225 million RCF. It also extended a €70 million RCF and reduced a €140 million RCF to €100 million. The lenders were Barclays, Bank of China, BNP Paribas, BAML, HSBC, Lloyds, KBC Bank, RBS, Santander and Wells Fargo.

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

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