Pbb sets €6bn 2012 new business target

Deutsche Pfandbriefbank (pbb) expects to lend at least €6bn on property this year after completing €6.3bn of business in 2011.

The bank has restructured its origination team following Harin Thaker’s departure, appointing London-based Charles Balch as head of cross-border business, the UK and central Europe.

Of the banks’s €6.3bn real estate lending in 2011, €2.8bn was loan extensions and €3.5bn new deals. The average loan-to- value level was 65% and the average gross margin 205bps.

Some 16%, or €1bn, was lent in the UK, where the bank was one of the biggest lenders, while 53% was lent in Germany. At €3bn, the UK represents 12% of pbb’s €25.2bn property book.

Pbb real estate board member Bernhard Scholz said lower deal flows meant the percentage of German deals could fall in 2012.

Most of pbb’s property lending up to 45-50% loan-to-value level was funded via the pfandbrief market, but it provides some senior unsecured financing for LTV ratios up to 65%, some of which is syndicated.

Scholz said pbb expected to do more with lenders with other funding sources, which could finance the 50-65% tranche, “a structure that has become more interesting”.

The bank has just closed a Spanish deal for Value Retail, with Pramerica providing the top slice.