Real Estate Capital market commentary
• Segro and PSP put in place €208m of new financings across their German, Polish, Czech and French portfolios, from German banks Aareal, Deutsche Pfandbriefbank and Helaba.
• In the largest deal in Germany, a club of lenders refinanced prime shopping centre Mall of Berlin with a €600m loan. Pension fund BVK contributed the majority, at €450m, with Deutsche Hypo and BNP Paribas funds making up the rest of the alliance.
• Another giant deal was Aareal’s and Deutsche Pfandbriefbank’s refinancing of Beacon Capital Partners’ First Tower in Paris. The German banks split €515m of senior debt between them, while BREDS provided an €85m mezzanine loan.
• Blackstone’s New York-listed mortgage trust increased its activity in Europe, making its first continental loan, in the Netherlands, and following it up with a €72m loan to KKR in Spain. It also provided €204.5m of loan-on-loan financing for Sankaty Advisors & Canyon Capital, secured on UK hotels.
• UK listed property companies sought to tap the improving debt market, with Primary Healthcare Properties, Kennedy Wilson Europe Real Estate and LondonMetric all putting in place new arrangements.
• Three Czech banks completed this cycle’s largest Eastern European real estate financing, backing Point Park Properties’ purchase of 11 Czech logistics parks with a €380m loan.
• Refinancings of assets previously tied to nonperforming loan portfolio sales was a strong theme, with deals from Royal Bank of Scotland, Deutsche Pfandbriefbank and Blackstone.
• There was a notable amount of lending in the recovering southern European markets. Aareal and BREDS originated loans in Spain, a club of domestic banks put together a €307m deal in Italy and Cairn Capital arranged a €235.7m bond against Greek assets.
Click to see recent lending deals: CAPITAL WATCH recent lending