Recent lending: Mega-loan contributes to a busy autumn

Each month, Real Estate Capital compiles data on recent lending deals in the UK and continental European real estate debt markets. A rundown of transactions from mid-August to mid-September 2017 can be found by clicking on the below image.

Blackstone is on course to close a €2.6 billion financing of its Sponda platform in Finland, in one of the cycle’s largest real estate lending deals. US investment banks Citi and Morgan Stanley, as well as Royal Bank of Canada and Goldman Sachs’ mezzanine lending business, have been lined up to provide the facilities. In June, Blackstone agreed to buy the issued and outstanding shares in Helsinki-listed Sponda for an aggregate equity purchase price of around €1.76 billion.

The UK market attracted finance for the residential sector. Affordable housing provider Pocket  – Living secured a £123.5 million debt package from Lloyds Bank Commercial Banking and the Homes and Communities Agency (HCA). Meanwhile, Investec Structured Property Finance provided £60.7 million for two private rented sector (PRS) schemes in the south of England. In Scotland, Wheatley Group’s social housing development was backed by Royal Bank of Scotland and Bank of Scotland with a £65 million loan, while LAR Housing Trust secured another £65 million debt facility to boost its portfolio of mid-market rental properties.

Two major deals for trophy assets were recently closed in continental Europe. In Ireland, Hammerson and Allianz Real Estate closed a €625 million refinancing of the Dundrum Town Centre shopping mall, while Belgian developer Ghelamco sourced a €370 million senior loan from a trio of German banks to refinance the Warsaw Spire office complex, located in the Polish capital.

LEG Immobilien and British Land turned to the capital markets to raise finance, with €400 million of fresh capital raised by the German housing provider through a senior convertible bond issue and £300 million raised by the UK REIT through the issue of its first sterling bond.

Allianz Real Estate boosted its UK loan portfolio as it participated in a £212 million majority stake in the senior debt financing of 55 Baker Street in London. In August, BNP Paribas and TH Real Estate announced the refinancing of the building, with the bank providing the senior tranche and the alternative lender writing the mezzanine part, which is understood to be more than £100 million. The size of the total debt facility was undisclosed.

US investment bank JPMorgan backed the recovery of the residential market in Spain with a €150 million bridge loan to accelerate Neinor Homes’ land acquisitions for its new housing development.