Refinancings worth more than £1.3bn have taken place in the past eight weeks. One of the largest was Duet Private Equity’s and Deutsche Bank’s £375m debt package for the Mint hotel portfolio, recently acquired by Blackstone. Deutsche Bank provided around £300m of senior debt on a five-year term at more than 300bps over Libor and Duet a £75m mezzanine loan.
The debt replaced a £450m Lloyds Banking Group facility to the hotels’ previous owner. In France, Aareal Bank provided €350m to refinance the luxury hotels belonging to Groupe du Louvre, while a syndicate of five French banks, including Natixis, Crédit Agricole CIB, Société Générale and BNP Paribas, came together to lend €650m to refinance the group’s budget hotels.
Santander and DekaBank, meanwhile, provided £100m to refinance two of London & Stamford’s City of London office assets: One Fleet Place and One Carter Lane. Finally, Deutsche Pfandbriefbank extended €80m of loan facilities for Tamar European Industrial Fund for three and a half years from the November maturity. The loan-to-value ratio was just under 65%; the initial cost of the finance was 5.84%. The debt is secured on a portfolio of industrial properties in Germany and Scandinavia.