May 2014 Issue

    Month: May
    Year: 2014

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    ICG builds German strength with €50m mezzanine push

    Intermediate Capital Group (ICG) is allocating €50m to German real estate investments, and has built up a new real estate team there. “After establishing a track record and a decent deal pipeline, the plan is to start  raising a fund next,” said Guido Lobpreis, head of the new team. The move is part of the […]

    Bains and Walsh made partners as Rockspring expands

    Independently owned investment manager Rockspring has increased its number of partners from 12 to 14. Richard Bains and Tom Walsh have been promoted to partner, the first additions to the partnership since Edmund Craston joined the pan-European business in 2009 as managing director. Bains and Walsh were already shareholders and have increased their ownership through […]

    Viewpoint: How strong are the legs on this equities bull run?

    With earnings season upon us, it is worth looking at how the equity market is interpreting today’s  economic climate. While equity prices continue to hit record highs, the 10-year treasury rate, now trading at 2.70%, has yet to break the 3.46% 10-year average – or 4.80% if we ignore the past five years. Aside from […]

    Indirect investment market: Jones Lang LaSalle market commentary

    UK market overview Average secondary market pricing continued to improve across all UK sectors in March, moving closer to net asset value by a further 0.33%, to an average discount to NAV of just 0.43%, writes Ashley Marks. The improvement was driven by the balanced and retail warehousing sectors, as investors seek higher-income-producing funds, which […]

    Capital data: European CRE loan/REO sales

    Cushman & Wakefield market commentary With IBRC sales flooding the headlines in Q1 2014, CRE loan sales were at their highest level since the start of structured bank deleveraging. According to C&W Corporate Finance research, closed Q1 deal volumes hit €23.9bn, with a further €5.9bn so far in April. The year-to-date total is €29.8bn, just […]

    Revolving credit gives better spin to big REITs’ borrowings

    British Land, Segro and Capco tap debt repricing with new unsecured facilities, writes Alex Catalano

    Commercial developers get few invites to funding party

    Commercial projects are yet to benefit from a surge in property lending, reports Doug Morris These are frustrating times for commercial developers. UK plc has taken its initial, tentative steps on the path to recovery and occupiers have shown signs of expansion for the first time in years… just at the point when some familiar […]

    Property company financing: Select few operate under the radar on the mezzanine level

    Senior debt revival has not dented niche mezzanine providers’ business, reports Lauren Parr Mezzanine deals tend to be arranged quietly, so a lack of publicity doesn’t mean they aren’t taking place. Borrowers as well as specialist mezzanine lenders say a perception that the European mezzanine lending market is floundering since the revitalisation of senior lending […]

    Retirees’ gain is insurers’ loss as annuities regime changes

    Reform of annuities will drastically cut one source of funding for property, writes Alex Catalano

    CREFC Europe conference: Italy is the new Spain as hot destination for debt investors

    Little domestic competition and lots of distress make Italy lenders’ next target, reports Lauren Parr

    Comment: ECB review adds next course to NPL feast for hungry debt buyers

    Investor appetite for non-performing property loans is at an all-time high. For evidence, look no further than the sale by the liquidator of €19bn of IBRC bad bank loans and the speed at which they were auctioned off, says Cushman & Wakefield. Those IBRC sales, of loans on properties in Ireland, the UK and Germany, […]

    Hayfin lands €70m performing loan portfolio from Sareb

    UK investment firm Hayfin Capital Management has bought €70m of performing loans from Spanish bad bank Sareb. The loans were part of a debt portfolio tied to medium-sized companies, called ‘Klauss’. Hayfin was set up in 2009 by ex-directors of Goldman Sachs Richard Hayden and Tim Flynn. The London-headquartered group, with two staff in Madrid, closed a […]

    CREFC education sessions attract conference crowd

    Over 260 junior market participants and students joined CREFC Europe’s educational sessions at its London conference on 2-3 April. CREFC Europe chief executive Peter Cosmetatos said education was even more important now because there have been less opportunities for people to “learn on the job” in the “lean years” since the financial crisis. He said […]

    AXA Real Estate mulls step into mezzanine debt arena

    Major senior lender eyes opportunities for well-priced mezz investment

    Investors shift focus from central London to regions

    UK investors spent 65% of their total £5.8bn purchases outside greater London in the first quarter of 2014. The latest figures from The Property Archive show investors bought £11.4bn of property, less than the £15.8bn in Q4 2013, but around the same level as in Q1 2013. Central London investment fell as an overall percentage […]

    Rental growth and investor interest set to shield property from bond yield hike

    Property sector is robust enough to shrug off modest bond yield rises, AEW seminar speakers say


    CBRELS names German head Nikolaus Choina has been appointed head of CBRE Loan Servicing’s German operations, supporting Clarence Dixon, head of CBRELS, and Piotr Tokarski. Choina, a German national, has worked at US debt investor LNR Germany, the sister company of European loan servicer Hatfield Philips, and at Kalyan steps up at CBRE GI Sabina […]

    Virginia joins US backers of Europa fund

    Another US pension plan is investing in Europa Capital’s fourth pan-European real estate fund. Virginia Retirement System approved a commitment of around €75m, joining other investors such as Los Angeles County Employees and San Diego City Employee, which invested last year. Europa is targeting €750m and has been raising capital  for about two years. Virginia’s allocation […]

    Shaftesbury locks into low rates with long-term facility from Canada Life

    Shaftesbury has shifted some of its debt to longer-term, fixed-rate funding, arranging a new £134.75m, 15-year loan with Canada Life Investments. “We’re a long-term business and we wanted to tap into long-term funding, which is at historically low rates,” said Shaftesbury’s finance director Paul Ward. “We’re very pleased with the pricing, which is very competitive.” The […]

    Orchard Street to target long leases

    Orchard Street Investment Management is investing £150m in long-leased UK property for a new UK pension fund client. Orchard Street partner John Humberstone said the pension fund, which already invests in property, aims to build a portfolio of £10m-£30m assets let on average 15-20-year, inflation-linked leases across sectors. Orchard Street will target a spread over […]

    Helaba brings in Jezequel to lead French property division

    Landesbank fills post vacant since last year in key international market

    M&G writes first Dutch resi loan

    M&G Investments has provided a €110m senior loan for a Dutch company’s acquisition of a €170m residential portfolio. The loan is backed by 1,250 homes including an Amsterdam apartment complex and assets in Groningen, Heerenveen and Rotterdam, plus several commercial properties. Paul Dittmann, M&G’s head of senior mortgages, said the majority of the loan was […]

    Starwood seeks £330m hotels loan

    Starwood Capital has launched a mandate for £330m of debt to refinance part of its UK hotels portfolio. The US private equity firm has invested around £750m in UK hotels and hospitality assets over the past 12-18 months, with purchases including 23  De Vere Venue hotels in March, backed by £140m of debt from RBS […]

    BAML leads race for Hines’ €430m Milan refinancing

    Citigroup is also second-round bidder to refinance Porta Nuova scheme

    Blackstone hunts sub-60% debt to close Alban Gate and wins Tower in Irish loan deals rush

    Blackstone has put out a low- leverage financing mandate for its purchase of Alban Gate on London Wall, EC2. The private equity firm is under offer to buy the 380,000 sq ft office building from Carlyle Group for around £300m, as part of its core-plus strategy. “Gearing won’t be above 60%,” said a banking source. […]

    Lone Star recruits Ohlmeyer as London managing director

    Stephan Ohlmeyer has joined Lone Star as managing director in the firm’s London office. He comes from credit manager Intrum Justitia, where he was director of purchased debt since last June. German-born Ohlmeyer,  who has previously worked on European loan investing at Och-Ziff, Värde and Goldman Sachs, will work with Angus Dodd, who manages UK […]

    Sale of FMS’s servicer could trigger German NPL sales

    Bad bank’s planned sale of servicer handling €119bn of former HRE non-performing loans is expected to herald loan sales in Germany and beyond