CAPITAL WATCH: Recent lending deals April 2016

LBBW’s London branch was behind a £210 million financing of the Aldgate Tower office building located on the eastern fringes of the City of London. The German bank provided the loan to Brookfield and China Life to fund the acquisition of the 317,000 square foot tower from Irish firm Aldgate Investments. LBBW has provided a 60 percent loan-to-value facility for five years. Starwood was previously lender to the building, which was developed in 2014.

In the syndication market, Lloyds Bank Commercial Banking placed a half-share of its recent £185 million financing of London’s O2 arena with Industrial and Commercial Bank of China, in the latest example of an Asian bank participating in a high-profile European loan. The loan, originated in January, will finance the development of outlet retail at the entertainment venue and will also refinance existing leisure space at the venue.

M7 Real Estate, the pan-European multi-let property specialist, turned to Barclays to finance its latest UK investment. Barclays has financed M7 at the corporate level since its 2009 inception but has not provided significant asset-based finance to the firm until now. The bank provided a £76.5 million loan secured by the mixed-use ‘Omega’ portfolio of 26 UK assets, which M7 bought from Goldman Sachs for around £128 million.

In the continental European market, pbb Deutsche Pfandbriefbank remained active. The German lender provided a €160 million loan to Valad Europe and its institutional partner to finance 22 central European industrial and logistics properties. The bank also provided €72.5 million to back the purchase of nine French retail parks by Credit Agricole Assurances’ Predica, AG Real Estate and Frey.

Helaba also had an active month. The bank backed Valad Europe’s Polish retail fund with a 50 percent LTV loan totalling €133 million and financed Nordic private equity firm NREP’s mixed-use Finnish portfolio with €74 million of debt.

In the Spanish market, ING Real Estate Finance provided GreenOak Real Estate with a €72.5 million five-year loan secured by a portfolio of seven logistics properties located in and around Madrid.

Real estate investors turned to the bond market to raise finance this month. Kennedy Wilson Europe Real Estate carried out a second draw-down of €150 million on its EMTN programme, issuing 3.25 percent bonds due 2025. Meanwhile, Spanish SOCIMI Merlin Properties refinanced a bridge facility for its purchase of Testa Inmuebles with €850 million of unsecured bonds with a maturity of seven years and an all-in cost of 2.225 percent

Click here to view a table of recent lending deals in April 2016.

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