CAPITAL WATCH: Recent lending deals October 2016

The largest lending deal recorded in the last month was P3’s refinancing of its pan-European portfolio. In a clear message that lenders remain eager to provide large loans across jurisdictions, P3 closed a financing across three loans on which Eastdil Secured advised. Morgan Stanley provided around €600 million to finance western European and Polish assets while a club of banks provided a similar amount for Czech and Slovakian properties. A third loan financed Romanian warehouses.

Several significant Dutch deals were closed during the period. Fund manager Amvest refinanced its residential core fund of Dutch assets with a €700 million loan provided by ABN Amro, ING and Deutsche Hypo. In a separate deal, Round Hill Capital sourced a €460 million loan to refinance its Dutch residential portfolio, comprising 7,000 units. The private placement was structured by ABN Amro and investors included clients of AXA.

OfficeFirst Immobilien, part of IVG Immobilien, sourced a €695 million refinancing of its German office portfolio. The refinancing comes ahead of a proposed IPO of the company. The club of banks which provided the long-term loan and bridge financing included Bank of America Merrill Lynch, Helaba and Deutsche Bank, according to CoStar News.

In another major refinancing, Italian firm Beni Stabili closed a €710 million refinancing secured on a portfolio of Italian properties leased to Telecom Italia. The lenders in the deal were BNP Paribas, Credit Agricole, Natixis, Societe Generale, Intesa Sanpaolo and UniCredit.

Several property firms tapped the bond markets to raise capital. French REIT Gecina raised €500 million through a euro bond issue, while fellow listed French property company Klépierre raised €600 million through a 15-year bond issue.

Several UK firms also used private placement deals to raise money. Capital & Counties Properties raised £175 million through bonds placed with five US investors, while LondonMetric raised £130 million through four UK and US investors. Pricoa and MetLife were the investors in a US private placement for healthcare property group Assura.

There was one major CMBS deal during the month, although the deal saw Barclays securitise loans for treasury management purposes, with the notes understood to be mainly retained. The £2.43 billion Griffon Funding deal securitised 58 loans within four tranches and two unrated interest-only strips.

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