Real Estate Capital market commentary
• Deutsche Bank completed a giant €1.5bn refinancing of troubled German property company IVG in the largest arrangement during the period. A €680m element of the loan is thought to be the candidate for a possible CMBS.
• Of a similar scale was Deutsche Wohnen’s €1.36bn refinancing by Berlin Hyp and Helaba. German residential continues to provide the steady returns attractive to banks.
• Whole loan syndications were notable as big banks look to earn fees by selling on debt. M&G, AEW and Deutsche Postbank bought debt held against Tour First in Paris; Highbridge Principle Strategies made its first purchase, a £75m loan against three UK business parks; Helaba sold a mezzanine tranche backed by a Parisian asset to half a dozen Korean investors; and Apollo bought a £39m junior tranche secured on luxury London apartments.
• Despite improvement in the banking market, large listed firms continued to source debt via the capital markets; Atrium, Citycon, Grand City and Unibail-Rodamco all issued bonds.
• Beni Stabili Group completed €500m of financings in September with a consortium of banks, held in part against its Telecom Italia portfolio. The transaction could be a sign of things to come as investors look to new European economies and banking regulation eases.
• Credit Suisse signalled plans to boost its lending in October, with a £350m loan to Goldman Sachs, Avenue Capital and Golden Tree Asset Management, for their purchase of a Travelodge hotels portfolio.
• Handelsbanken sealed its largest UK commercial deal yet, supplying half of a £325m financing, with Helaba, for a British Land and Tesco joint-venture portfolio.
• Royal Bank of Scotland is becoming more active as it clears up its legacy problems. It refinanced Kennedy Wilson European Real Estate’s Jupiter portfolio with a £184m loan and backed Development Securities and Propium Capital Partners in their £87m purchase of Becket House in London.
Click to see recent lending deals: CAPITAL WATCH: Recent lending deals