CAPITAL WATCH: Recent lending deals September 2016

• In Ireland, Morgan Stanley provided fresh finance for the 1.2 million square foot Blanchardstown shopping centre near Dublin, following its purchase in June by Blackstone. Morgan Stanley had led a financing of the scheme last year for previous owner Green Property. AIB and Goldman Sachs, which had participated in the 2015 financing, have participated in the senior and mezzanine parts of the new financing, respectively.

• Also in Ireland, Macquarie Lending, the investment arm of the Australian bank, provided a €300 million refinancing of the Mater Private Hospital in Dublin. The loan refinanced existing debt held against the property and also provided a tailored capex facility.

• In the UK, debt fund manager DRC Capital participated in the financing of Aermont Capital’s purchase of Pinewood Group, the owner of iconic studios in the London area. DRC provided a £60 million preferred equity facility, which alongside debt already held by the Pinewood Group financed the £323.3 million deal. Overall, the UK market remained relatively subdued.

• Aareal and Natixis led the financing of French REIT Cegereal, with a €525 million facility. The loan refinanced €405 million of debt ahead of maturity next year, with the remainder to fund the firm’s new acquisitions. The five-year loan carries an interest rate of 1.35 percent. Cegereal said that it has reduced its finance costs by 45 percent with the new deal.

• Also in France, Helaba and DekaBank jointly provided around €100 million of finance to Korean investor Samsung SRA Asset Management to finance its €300 million-plus purchase earlier this year of the Tour So Ouest office tower in Paris.

• ING, pbb Deutsche Pfandbriefbank (pbb) and Polish bank PKO Bank Polski clubbed together to finance the Magnolia Park shopping centre in Wroclaw, Poland, which is owned by Blackstone’s retail platform Multi. Blackstone bought the mall in 2011 and subsequently undertook a major expansion.

• Pbb reported a handful of interesting deals during the month, including a €135 million financing of the five-star W Hotel Amsterdam alongside Deutsche Hypo. The luxury hotel opened in stages from last October. Pbb provided €85 million and Deutsche Hypo provided €50 million.

• Deutsche Hypo also had a busy summer, including a €68.6 million financing of Patrizia Immobilien’s ‘Granite’ portfolio of Dutch residential properties in late August. The German bank financed the 29-strong portfolio for 10 years, reflecting an LTV of 46 percent.

• In the development market, Berlin Hyp provided €80.6 million of finance to Hamburg-based ABG Group. The three-year loan will fund the firm’s development of a tower scheme in Hamburg’s St Georg area, including a 22-room Courtyard by Marriott hotel and 113 apartments.

• Two real estate firms raised capital through the bond markets. Finnish property firm Citycon raised €350 million through a Eurobond issue, with the 10-year note carrying a 1.25% fixed rate. Kennedy Wilson Europe Real Estate issued £200 million of fixed rate bonds by way of a tap of £300 million 3.95% bonds due 2022 issued in 2015. The new bonds were issued at a 3.572% yield.

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

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