Busy summer for banks sees Aareal write big Paris loans

German lender teams up to refinance mall and offices in French capital

Banks closed on several debt facilities over the summer, including two deals by Aareal Bank in Paris. The German lender teamed up with Helaba to provide Rockspring with €219m of debt for the O’Parinor shopping centre in the north of Paris.

The manager bought a 51% stake in the scheme last October on behalf of the National Pension Service of Korea’s NPS Real Estate Projects Limited Partnership. The five-year loan comes with extension options for a further two years.

With Morgan Stanley, Aareal also jointly arranged a €210m debt refinancing for Défense Plaza, an office building in the Paris business district, for a joint venture between Beacon Capital Partners and Northwood Investors.

Aareal acquired the €195m senior tranche of the debt, which was initially provided by Morgan Stanley, while the latter retained a €15m mezzanine tranche. In London, Barclays Real Estate financed Tishman Speyer’s purchase of the Sanctuary Buildings in Victoria.

It lent £109m to Tishman’s core European fund, which bought the government-let property in July for around £175m from Irish group Vico Capital. In turn, Vico repaid the outstanding £119m of Morgan Stanley-securitised debt on the office building.

Meanwhile, Aviva has agreed terms with Primary Health Properties for a new £75m, seven-year, fixed-rate loan. PHP will use £50m of the loan to repay existing debt with other banks. An Allied Irish Bank loan will be reduced by £20m to £30m and a Royal Bank of Scotland loan will be reduced by £30m to £110m.

The new facility follows a £50m, three-year loan from Clydesdale Bank that was signed in July. PHP is also in talks to extend its restructured, bilateral loans with AIB, RBS and Santander, which total £205m and mature in January, for a new five-year term from 2012.

Finally, Wells Fargo is leading the financing behind Lone Star’s $3.2bn-$3.3bn purchase of distressed US property loans from Anglo Irish. At a leverage level of 60%,  it could provide up to $2bn, which may then be syndicated or securitised. Alternatively, Wells Fargo may bring in a co-lead manager.

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