CAPITAL WATCH: Recent lending deals

• The largest UK loan during the period, and one of the largest this cycle, was Citi’s and Morgan Stanley’s £1.5bn, five-year facility to Lone Star for its £2.2bn purchase of Aviva’s Project Churchill loans and real estate portfolio. Each bank will provide £750m and they are expected to syndicate part of their loans.
• Blackstone joined Secure Income REIT’s £587m refinancing of its leisure and healthcare portfolios. Blackstone Mortgage Trust and Rothesay Life provided a £367m, seven-year non-recourse term loan to refinance SIR’s leisure portfolio, while Legal & General lent £220m against nine UK private hospitals let to the Ramsay Group. The deal is the first when L&G has deployed third-party capital alongside its annuity funding.
• Redefine International put together a club of four banks that provided a £303m acquisition facility to fund its £490m purchase of the AUK Portfolio from Aegon. HSBC, Barclays, Abbey National Treasury Services and Royal Bank of Scotland supplied a £155m term loan and a £148m revolving credit facility at 1.9% and a loan-to-value ratio of around 60%.
• LaSalle Investment Management backed Brockton Capital’s £137m purchase of Great Minster North in Victoria, London SW1, with a £103m whole loan, at a 75% loan-to-value ratio. LaSalle IM, which invests in stretched senior and mezzanine debt through its LaSalle Real Estate Debt Strategies II fund, is planning to syndicate the loan.
• France’s largest financing this year, and the largest Continental deal during September, was by a trio of French banks, Crédit Agricole CIB, Natixis and Crédit Mutuel, which provided an €854m debt package to French property group Altarea. The facility refinanced 14 French shopping centres, two Italian, and one Spanish mall near Barcelona.
• Deutsche Bank also refinanced a portfolio of three high-quality Italian shopping centres, lending over €400m to La Société Générale Immobilière, taking out a Hypothekenbank Frankfurt facility. Deutsche Bank will syndicate part of the debt, with Allianz and AXA believed to be in the frame for participations.
• In one of the largest development facilities reported this cycle, Santander agreed to provide up to €600m — 100% of the
construction cost — for Lone Star’s and Vilamoura World’s £1bn leisure resort in the southern Algarve region of Portugal. The
Spanish bank will lend on a project-by-project basis as the 1,700ha resort is built over five years. Investors are being sought for the development.
• Newly formed Cityhold Office Partnership, managed by TH Real Estate, secured a €231m, 18-month bridging loan from ING Real Estate Finance. The facility partially refinances Cityhold’s €2.2bn, 15-asset office portfolio and will be allocated over six buildings. The loan is expected to be replaced either like-for-like on the individual assets or combined with the legacy debt accompanying the portfolio.

Click here to see tables of August & September 2015 deals REC 10.15 CW Recent lending p48-49