CAPITAL WATCH: Recent lending deals Jan/Feb 2016

Real Estate Capital market commentary

• Among February’s largest continental European deals was a €341 million financing of Blackstone’s purchase of the 1 million square foot logistics portfolio of Austria’s Immofinanz. Helaba provided €250 million to finance 24 German assets, priced in the mid-100s basis points. Erste Bank provided €91 million for Central and Eastern European assets at more than 300 bps.

• In the Spanish market, ING Real Estate Finance provided €280 million to back the purchase by the Philippines-based billionaire Andrew Chan of the Torre Espacio (Space Tower), one of four skyscrapers which stands in Madrid’s Cuatro Torres business area. The purchase was conservatively leveraged at around 50 percent and was understood to be priced within 150-175 bps. ING is now aiming to syndicate the loan.Deutsche Pfandbriefbank (pbb) had an active few weeks, closing a €255 million loan to fund Partners Group’s purchase of 97 Swedish and Finnish properties and €160 million alongside German insurer ERGO to finance Allgemeine Sudboden Grundbesitz’s purchase of the Neue Balan development in Munich.

• Deutsche Pfandbriefbank (pbb) had an active few weeks, closing a €255 million loan to fund Partners Group’s purchase of 97 Swedish and Finnish properties and €160 million alongside German insurer ERGO to finance Allgemeine Sudboden Grundbesitz’s purchase of the Neue Balan development in Munich.

• In the Paris market, BNP Paribas and Credit Agricole CIB provided €450 million of finance to back AXA’s purchase of the Tour First office tower in late January. The banks provided a seven-year loan at 55 percent LTV, according to CoStar.

• In the UK market, Lloyds Bank Commercial Banking underwrote a £185 million loan to the owners of the O2 arena, once known as the Millennium Dome, in London. The four-year loan, to Crosstree Real Estate Partners and Anschutz Entertainment Group funds the development of a new outlet retail scheme and also refinances existing retail and leisure.

• Islamic finance specialist Gatehouse Bank had a busy start to the year. The bank closed two Shariah-compliant financing deals in the UK. Gatehouse provided £20 million to Miflats, the private rented sector subsidiary of Criterion Capital, for a recently-refurbished residential scheme in Bracknell. It also provided £21 million to London-based developer Al Mubarakia, for the conversion of offices in Wapping into flats.Hammerson extended an existing €1 billion RCF by €500 million to finance the £350 million acquisition of the Grand Central shopping centre in Birmingham. The loan had originally been agreed last September to fund the purchase of the Project Jewel loan portfolio from Ireland’s National Asset Management Agency. Hammerson’s lenders on the facility are BNP Paribas, Lloyds, JP Morgan, HSBC and Deutsche Bank.

• Hammerson extended an existing €1 billion RCF by €500 million to finance the £350 million acquisition of the Grand Central shopping centre in Birmingham. The loan had originally been agreed last September to fund the purchase of the Project Jewel loan portfolio from Ireland’s National Asset Management Agency. Hammerson’s lenders on the facility are BNP Paribas, Lloyds, JP Morgan, HSBC and Deutsche Bank.

Click here to see recent lending deals in the market in January and February 2016.

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