Real Estate Capital market commentary
• In July, a club deal led and arranged by ING and including BNP Paribas, Crédit Agricole CIB and Société Générale provided Europe’s largest loan for some time: a €500m facility to Chelsfield and Olayan Group. The debt will finance their €1.2bn purchase of a prime, nine-asset, retail-led Paris portfolio from Risanamento.
• Deutsche Pfandbriefbank continued to be active over the summer. The German bank’s largest deal, in July, was a €420m loan to Aurelis, secured against the company’s 11m m2 German portfolio; the bank also completed its first loan-on-loan financing, with Cerberus.
• The strength of the European logistics market was underlined by lenders’ willingness to finance deals in the sector. Pricoa, Starwood, ING, Nordea, Unicredit, RBS, Wells Fargo, Citibank and Deutsche Pfandbriefbank all provided finance against purely logistics
• In the UK, the social and private rented housing sectors are starting to garner interest from long-term lenders. Legal & General provided two loans to housing associations, totalling £65m, M&G completed a £40m deal and Aviva lent £67m (see pp23-25).
• Two of the largest deals agreed in the UK market in the summer were whole loans that will ultimately lead to syndicated mezzanine tranches: Barclays’ £335m loan to Oaktree and Patrizia for their purchase of three business parks from MEPC; and Deutsche Bank’s £300m refinancing for the owners of London’s Savoy Hotel.
• Guggenheim Partners completed its first UK lending deal since opening a real estate office in London last year. The US finance group lent £130m to Delancey to redevelop the London 2012 Olympic Media Centre. Its real estate business in Europe is led by former Heron International deputy chief executive Jonathan Goldstein and it is expected to expand its big-ticket lending market presence soon.
• Colony Capital signed off a first lending deal in Greece, providing Dolphin Capital with a €40.4m, six-year facility secured on a luxury residential development in Porto Heli in the Peloponnese. The structured deal included income guarantees payable to Colony.