CAPITAL WATCH: Recent lending deals May 2017

• Investors continued to pile capital into the UK regional logistics market, creating opportunities for lenders. US bank Wells Fargo, an increasingly active player across the UK, provided a £151 million financing of Oxenwood Real Estate’s £286 million purchase of the prime ‘Ultrabox’ portfolio of warehouses. The 3.9 million square feet portfolio was sold by Lone Star and Anglesea Capital which assembled it across a number of deals.

• The UK residential market attracted finance during the month. Cain Hoy provided £290 million of fresh capital to Lodha for its central London appartment scheme, Lincoln Square. Cheyne Capital and Crosstree Real Estate Partners collaborated with senior and mezzanine debt tranches respectively in a £120 million financing of the redevelopment of the Edwardian mansion block Harcourt House in London into luxury flats and a private medical centre. In a separate deal, Lloyds, alongside the Homes and Communities Agency, provided £32 million for the next phase of housing development at Aberfeldy Village in east London.

• Several continental European real estate companies turned to the capital markets to raise finance during May. Spanish SOCIMI Merlin Properties raised €600 million through an unsecured eight-year bond issue. Meanwhile, French REIT Unibail-Rodamco raised €1 billion across two bond issues, for 12 and 20 years. Total demand for the notes reached €2.7 billion, the firm said.

• Patrizia Immobilien, the German investment firm, also used the capital markets to raise debt in May. The firm issued a €300 million bonded loan through the country’s schuldschein market. Structured across three tranches with varying maturities, the loan was priced at an average coupon of 1.5 percent.

• German banks Helaba and pbb Deutsche Pfandbriefbank remained active in the central and eastern European markets, with a €177 million loan to investor CTP secured by its CTPark Bor logistics park in the Czech Republic. Logistics property is in favour with lenders across many European jurisdictions at present.

Click here to view a table of recent lending deals in April 2017.

SHARE