CAPITAL WATCH: Recent lending deals April 2017

A mega-RMBS of the financing of Blackstone and Prudential’s purchase of a performing buy-to-let residential portfolio from UK Asset Resolution was due to close as Real Estate Capital went to press. The £9.97 billion Ripon Mortgages PLC securitises the majority of the loan book, which traded for £11.8 billion and which comprises assets relating to Bradford & Bingley which were recently sold by the UK government-mandated UKAR.

UK REIT Hammerson sourced a £360 million revolving credit facility from a consortium of 14 banks, which included nine Asian banks, in a clear example of Asian banks increasing their exposure to the European property sector. The line-up included Chinese lenders such as Bank of China and Agricultural Bank of China, plus Taiwanese lenders including Chang Hwa and Hua Nan Commercial Bank. Taiwanese banks are gradually entering the market and took a slice of ING and LBBW’s syndicated Salesforce Tower loan, which closed last December.

In the UK market, Legal & General’s private credit business provided finance to support the £296 million purchase of London’s historic Olympia London Exhibition Centre. The five-year bilateral loan was provided on behalf of Legal & General Retirement, which invests in high-quality assets on a short and long-term basis to match UK pension liabilities.

Great Portland Estates tapped the US private placement market for its latest financing. The London-based developer/investor raised £175 million in a capital markets deal placed with eight institutional investors, of which three were new lenders to the firm. GPE has turned to the private placement market previously. Indeed, the latest deal refinanced £159.7 million of privately-placed notes.

In continental Europe, CPI Property Group, a central and eastern Europe-focused investor, sourced a €440 million financing of a portfolio of retail assets across the Czech Republic, Poland, Hungary and Romania, which was bought from real estate funds managed by CBRE Global Investors for around €650 million. German bank Helaba participated in the financing, with debt also sourced from several central and eastern European lenders.

Global Trade Centre Group, sourced a €64 million financing of a development in the Serbian capital, Belgrade. The firm turned to three subsidiaries of Italian banking group Intesa Sanpaolo for the financing of the 34,400 square metre Ada Mall, which is due to complete by the end of 2018.

Click here to view a table of recent lending deals in April 2017.