Real Estate Capital market commentary
• The largest UK loan during the period was Wells Fargo’s and Royal Bank of Canada’s £593m financing for private equity firm Lone Star, which purchased the majority of assets from Moorfield’s first and second funds. The UK properties securing the loan include hotels, office parks and shopping centres.
• Royal Bank of Scotland provided one of the largest speculative financings since the downturn, with a £100m facility for the King’s Cross Central Partnership to develop 170,000 sq ft office building Four Pancras Square.
• Deutsche Pfandbriefbank also issued a large development loan, in Hamburg, providing €102m to Quantum Immobilien to construct three office and mixed-use buildings at the Hafencity regeneration project in the city’s port.
• BNP Paribas wrote a huge, €739.5m cheque to refinance a French residential portfolio of 7,140 homes for Powerhouse France, a company managed by TwentyTwo Real Estate, run by former Perella Weinberg partner Daniel Rigby.
• The French bank also continued its focus on high-quality central London property, lending £90.4m to finance Tishman Speyer’s purchase of 100 New Oxford Street. BNP Paribas has also financed property in the capital for Grosvenor and Blackstone in the past six months.
• A trio of banks underwrote Patrizia’s €577m purchase of 137 apartment blocks in the Netherlands with a €331m loan. The transaction was the largest in Holland in the past year and was supported by Deutsche Hypo, ING Real Estate Finance and Deutsche Pfandbriefbank.
• Listed firms continue to use the capital markets to access cheap debt, with Frankfurt-listed Grand City issuing a €120m bond and Spanish SOCIMI Lar Espana a €140m bond.
• Omni Capital issued a £30m loan to LNT Care Developments, owned by former government “entrepreneur in residence” Lawrence Tomlinson, to develop care homes.
• Pricoa underwrote a €200m loan against the World Trade Centre in Amsterdam for CBRE Investors’ Dutch Office Fund, in the first continental European deal for its Friends Life mandate. The US insurer also completed a deal with residential developer Fizzy Living, secured against four of its projects.
Click to see 2015 lending deals: CAPITAL WATCH: Recent lending deals