November 2012 Issue

    Month: November
    Year: 2012

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    Insurers offer real estate a sound new debt policy

    The role insurance companies might play as real estate lenders was debated recently in a panel discussion I took part in, hosted by law firm DLA Piper. Research for the firm found that insurers might write £28bn of new UK commercial real estate lending in the next five years, about £5.5bn annually – around 15% […]

    Indirect investment market: Jones Lang LaSalle market commentary

    UK market overview The Jones Lang LaSalle Balanced Fund Index fell again, by -0.30% in October, with a 12- month return of -1.92%, writes Ashley Marks. Including secondary market pricing, this falls to -4.53%, reflecting investors’ continued nervousness about funds’ projected short- to medium-term performance. Redemption queues are increasingly common for open-ended funds, which is […]

    Investor pricing survey: Investors regain confidence in recovery by 2014

    There has been a slight uptick in investor sentiment in the latest Colliers International/ Real Estate Capital Pricing Survey, carried out three times a year by KASPAR Associates’ Dr Karen Sieracki. Yields have compressed a little in all sectors. Forecasts for 2012 capital growth improved by 1% since the last survey, in July, to -4.7% […]

    IPD chooses listed US suitor for global growth campaign

    Having created a world-class property benchmarking service, Investment Property Databank’s two founders are selling the private company to US-listed MSCI. They talked to Alex Catalano

    Oxford confers a degree of expertise on co-investments

    Canadian pension plan’s property arm takes on co-developments in London, reports Jane Roberts

    Joint firepower lets NBIM and AXA hit big targets in Europe

    German towers buy is third joint big deal for insurer and Norway’s wealth fund, writes Lauren Parr

    Co-investment: Partnership offers big players control of the property game

    Pension and wealth funds seek control via separate accounts and partnerships, writes Jane Roberts

    Broader funds put mezzanine lending on a whole new level

    Difficulty in deploying capital has led many mezzanine providers to withdraw, reports Lauren Parr

    Fund study takes snapshot of evolving debt vehicles market

    INREV report outlines real estate debt’s attractions as a new market to many, writes Jane Roberts

    Investors prove slow to board the property debt bandwagon

    Debt funds have won few commitments to date, but that could change soon, writes Jane Roberts

    Spotlight on debt investment may outshine CMBS market

    Delegates expected property debt to be the major investment focus in 2013, reports Lauren Parr

    Comment: Sponsors believe buoyant market will allow their debt funds to float

    With two, and potentially three, initial public offerings on the road, it’s a good time to ask: is listing property debt funds a good idea? No way, say the detractors. They will raise too little. They will be illiquid; they’ll trade at a discount. It’s an expensive way to raise capital and you’d only do […]

    Investors reach exit via asset sales as Henderson fails to extend Caspar’s life

    Investors in the Henderson Caspar Property Fund finally exited their investment this month, in a tense finale when the fund’s remaining 24 assets were sold to a Mountgrange/Patron Capital joint venture. Henderson’s efforts to restructure the fund were hampered by high gearing and the fact that most of the debt against the portfolio was securitised. […]

    Germany grants a reprieve to GOEFs

    The German government has reversed its plan to ban new open-ended funds, including spezialfonds. Following protest from banks, insurers and market associations, the government revised the draft for the implementation of the Alternative Investment Fund Managers Directive to allow open-ended funds to be issued within limits and for spezialfonds to continue. The spezialfonds sector had […]

    Noteholders back GRAND rescue plan

    Big majority of investors approve Deutsche Annington plan to extend and refinance €4.3bn CMBS

    RBS loses real estate derivatives pioneer Ljubic

    Phil Ljubic, one of the most experienced traders in property derivatives, has left Royal Bank of Scotland. Ljubic had been involved in the derivatives market almost since its inception about seven years ago and is well-known by all the market’s participants. Working under RBS head of ABS trading Pradeep Pattem, Ljubic was instrumental in establishing […]

    Hatfield Philips wins fight to enforce Treveria Orange loan

    AIM-listed Treveria’s attempt to thwart special servicer Hatfield Philips’ enforcement of a €370m loan has failed. Hatfield Philips declined to grant Treveria a second 12-month extension after the Orange loan in the Talisman-6 Finance CMBS matured on 15 October. The German retail investor applied for debtor in possession proceedings to block any enforcement measures, but […]

    Regulators outline controls on shadow banking industry

    Proposed regulation would cover property entities such as debt funds

    Aviva wins £100m Rank Hovis McDougall UK mandate

    The Rank Hovis McDougall Pension scheme has picked Aviva Investors’ multi-manager team to invest £100m in UK unlisted real estate funds. Aviva said the mandate takes its real estate multi-manager assets under management to £5.5bn. Aon Hewitt advised Rank Hovis McDougall. In a separate appointment, Tyne & Wear pension fund has decided to stick with […]

    British Land funds retail for Stanhope

    British Land is funding a £90m retail development in Hereford for Stanhope at a yield on cost of 6.75-7%. Stanhope said it was “the first forward funding deal of its kind to be signed in more than five years” – a sign of the ongoing shortage of finance for UK development. UK banks are said […]

    M&G and L&G find Genesis for housing investment push

    Housing association plans £130m sale-and-leaseback with two investors

    ICG-Longbow has regional debt in SSUP’s sights

    ICG-Longbow’s new senior debt fund will lend on UK regional property, charging all-in rates of 6.5-7.5%. The debt and property specialist is promising investors in Senior Secured UK Property Debt Investments (SSUP) a 6% income return and an 8% internal rate of return when fully invested. It plans to raise between £100m and £250m of […]

    Starwood and Cheyne flotations will target UK and Continental lending

    Cheyne Capital aims to raise £200m and Starwood £250m for mezzanine and senior lending

    Pramerica Real Estate Capital brings in Moffat to boost residential expansion

    Pramerica Real Estate Capital Group has hired a special projects head to drive further residential expansion. Andrew Moffat joined from HSBC’s direct property investment arm to help with deals within Pramerica Real Estate Capital – the funding arm that provides junior debt and preferred equity. He will also pursue other initiatives requiring residential expertise. Pramerica […]

    Rockefeller propels Europa back into mezzanine waters

    Parent firm funds mezzanine arm’s launch with around £100m firepower

    Peakside’s PREF 1 acquires Frankfurt bank buildings

    Peakside Capital has almost fully invested its €261m PREF I opportunity fund through the purchase of two office buildings in Frankfurt. A follow-on opportunity fund is in the pipeline. The buildings were bought from BHF Bank, a subsidiary of Deutsche Bank, which recently vacated the properties as part of  moves to wind down its real […]

    Renshaw vehicle raises £150m for senior lending

    Renshaw Bay is looking for lending deals after holding a first closing with £150m of capital for its senior debt fund. The alternative investment manager’s initial capital comes from its backers: RIT Capital Partners, owned by Jacob Rothschild; and South African outfit Reinet Investments. Renshaw is targeting a second closing for the fund some time in […]

    CMBS sector set for agency issues

    At least two more agency-style CMBS deals are in the pipeline, following Deutsche Bank’s  closing of the Florentia securitisation last month. “Borrowers are looking at it,” said a former securitisation banker, adding that the collateral is likely to be assets such as German multi-family housing. For example, German housing investor Gagfah is considering  marketing a […]

    Carlton Group sets €10bn target for European deals

    The chairman of the US Carlton Group has predicted that his real estate investment banking firm will do €10bn of business in Europe, as more distressed deals come onto the market. Howard Michaels said: “We will close $10bn of business in North America this year and  we think we will do €10bn of business in […]

    GSW joins convertible bond issue trend

    Berlin residential specialist GSW is the latest company to issue a convertible bond, raising €182.9m to finance further acquisitions. The unsubordinated, unsecured seven-year bond carries a 2.0% coupon and the initial conversion premium is 22.5% above GSW’s €29.555 reference price. It is convertible into 5.1m ordinary shares. GSW is the second German listed residential company […]

    Delancey and KKR negotiate rare RBS loan buy in Dublin

    Unusually, bank agreed to sell loan, rather than bank HQ building itself

    UNITE and Delancey jump on retail bond bandwagon

    Delancey’s Alpha Plus schools arm plans first issue secured on property, while UNITE believes student housing strategy will appeal to bond buyers

    Newcomer CarVal lands Lloyds’ Pittsburgh Irish loans

    CarVal Investors has bought the €350m Project Pittsburgh Irish non-performing loan portfolio from Lloyds. The opportunistic investment manager beat competition from the likes of Marathon and represents one of a fresh batch of loan buyers in Europe. CarVal’s bid was initially backed by joint-venture partner Centerbridge Partners, but Centerbridge did not eventually participate in the […]

    Northage and Williams quit CBRE’s loan servicing arm

    CBRE has lost two more members of its loan servicing business. Steve Northage, CBRE’s head of primary loan servicing, has resigned to join the European servicing business launched by US private equity firms Greenfield Partners and Raith Capital Partners. Northage will work with former CBRE Loan Servicing colleague Paul Lloyd, who resigned as head of […]

    Recent property lending deals

    A lot of large UK refinancings and acquisition deals in the pipeline since the middle of the year or earlier have yet to be signed, including several for hotel portfolios and central London financings. Santander continued to back entrepreneurial borrowers with intensive asset management strategies, such as Mountgrange and Patron Capital, and Columbus Capital, following […]