Real Estate Capital Europe’s Active Lenders 2023: The Banks, Part 2

Part two of our guide to the finance providers making their mark in Europe.

ING Wholesale Banking

Senior, whole loan, development lender
Active in Benelux, Spain, Italy, Portugal, Germany, Poland, UK, Czech Republic, Romania, France

Lending in 2022: c€5bn
Lending in 2023 to end Q3: c€3.5bn
Loan book at end Q3 2023: c€29bn

The Dutch bank reported several deals that closed in July. It participated, as one of four banks, in a €137 million green loan to a fund managed by Italy’s Coima to refinance the Corso Como Place complex in Milan’s Porta Nuova district. The former Unilever Tower had been refurbished under Coima’s ownership. Also in Italy, it provided a €145 million, five-year loan on a 50-50 basis with Crédit Agricole to an Italian fund managed by AEW, secured by 13 logistics assets. It also provided €100 million of a €400 million green loan to AEW to refinance part of the Logistis France logistics portfolio, comprising 48 assets. ING was sole bookrunner on a €64 million development facility with developer Montepino for a warehouse near Lisbon.

Investec Real Estate

Senior, development lender
Active in UK

Lending in 2022: €1.14bn
Lending in 2023 to end Q3: €604m
Loan book at end Q3 2023: €2.2bn

The UK and South Africa-headquartered bank’s 2023 lending to the end of Q3 included €200 million of commercial development loans and €25 million of residential development financing. Ninety percent of lending was for new loans. In March, it provided an £85 million loan to manager Global Student Accommodation for the refinancing and partial refurbishment of five student housing assets located around the UK. In June, it closed a £122 million loan to LCN Partners for the development of a 283,000-square-foot office scheme in southwest London, pre-let to consumer goods company Unilever, in what it said was outer London’s largest office development financing of the year.

JPMorgan

Senior, mezzanine, whole loan, development,
loan-on-loan lender
Active in Western Europe

Lending volumes and loan book size undisclosed

The US lender did not divulge volumes, but said 70 percent of lending was for refinancing, with the remaining 30 percent for development. In September, it closed a major London transaction: JPMorgan provided the senior debt, alongside mezzanine from manager Cheyne Capital, in a £780 million refinancing of corporate and infrastructure loans for developer Quintain’s Wembley Park residential-led development. In Q3, the bank provided a €150 million construction loan for the build-out of a portfolio of speculative logistics properties in Spain. In the same quarter, it provided a £190 million refinancing of a UK care home portfolio sponsored by a specialist care home investor.

LBBW

Senior, whole loan, development lender
Active in Germany, UK, France, Benelux

Lending in 2022: €5.53bn
Lending in 2023 to end Q3: €3.36bn
Loan book at end Q3 2023: €24.7bn

The lion’s share (€2.5 billion) of LBBW’s deals were new loans. The German lender’s development financing accounted for €139 million. Its lending deals included a €100 million, five-year financing for Berlin-based manager DLE Logistik Fonds for a German logistics portfolio. In May, it closed a brown-to-green office acquisition financing for a 40,000-square-foot building in Whitfield Street in London, in a transaction that included capex funding. In June, LBBW provided an £82.5 million financing for an automated robotic logistics unit in Leeds. The asset was eligible for LBBW’s green bond funding programme.

Morgan Stanley

Senior, mezzanine, whole loan, loan-on-loan lender
Active across Europe

Lending in 2022: €3bn
Lending in 2023 to end Q3: €1.6bn
Loan book at end Q3 2023: Undisclosed

US investment bank Morgan Stanley’s volumes were down from 2022, but it remained active. The lender reported $1.7 billion of 2023 lending to the end of Q3, compared with more than $3 billion across the whole of 2022. In April, Morgan Stanley teamed up with French lender Crédit Agricole in a €370 million senior refinancing of 15 high-end Spanish hotels owned by Blackstone, with LaSalle providing mezzanine in the deal. Morgan Stanley underwrote two-thirds of the senior loan. In a separate deal in Spain, also in April, it provided a €100 million financing of Canadian manager Brookfield’s Livensa purpose-built student accommodation assets. Later in the year, in November, it provided a circa €200 million Belgian office financing for Brookfield, in a deal securitised in the Magritte CMBS.

OakNorth

Senior, whole loan, development, preferred equity, loan-on-loan lender
Active in UK

Lending in 2022: Undisclosed
Lending in 2023 to end Q3: c€777m
Loan book at end Q3 2023: €3.8bn

An outlier in this list as one of the UK’s ‘challenger’ banks, OakNorth provided around £680 million of real estate finance in the first nine months of 2023. In May, in partnership with lender ASK Partners – in which it bought a half-stake in 2022 – it closed a £62 million loan against 133 apartments in the Amory Tower development in London’s Canary Wharf. In June, it provided a £35 million loan to developer Kings Crescent Homes for a build-to-rent scheme comprising 254 units in Kent. Other deals included a £23 million co-loan with ASK for a new Z Hotels compact hotel in London’s Leicester Square and a £30 million facility for OneMedical Property to back the growth of its UK-wide portfolio of medical centres.

pbb Deutsche Pfandbriefbank

Senior, development lender
Active in Germany, UK, France, Spain, Nordics, CEE

Lending in 2022: €7.5bn
Lending in 2023 to end Q3: €3.8bn
Loan book at end Q3 2023: €27.3bn

The German bank provided around €3.8 billion of new business in Europe in the first three quarters of 2023, putting it on track for a lower volume than 2022. In January, the bank provided a €90 million, five-year facility to Swedish residential property company Heimstaden Bostad, secured on a 14-property portfolio in the country. In January, manager Boreal IM sourced two debt facilities totalling €240 million from the bank to refinance seven logistics assets across the Netherlands, Spain and the UK. In April, the bank provided €117 million for a logistics portfolio in Poland and the Czech Republic to one of manager GLP’s logistics funds. In November, it announced a €113 million loan for a Czech logistics portfolio for property owner CTP.

Royal Bank of Canada Capital Markets

Senior, mezzanine, whole loan, development, corporate real estate, loan-on-loan lender
Active in UK, Germany, France, Benelux, Nordics, Spain, Ireland

Lending volumes and loan book size undisclosed

The Canadian investment bank did not confirm volumes but demonstrated activity through deal examples. It said new origination by its Real Estate Capital Partners business was mainly in the student housing and logistics sectors, and origination volumes were “slightly down” year-on-year, with two-thirds of 2023 volume consisting of development or hybrid development/investment loans. In April, it was co-lead arranger of a five-year, €245 million senior loan to refinance Brookfield’s construction loan for a portfolio of 11 student housing assets in Spain and Portugal. In October, it was lead arranger of a five-year, £525 million senior loan to finance UK logistics firm St Modwen’s development pipeline and the subsequent stabilisation of UK properties.

Societe Generale

Senior, whole loan, development, loan-on-loan lender
Active across Europe

Lending in 2022: €3.3bn*
Lending in 2023 to end Q3: €1.4bn*
Loan book size: Undisclosed

Data provider Dealogic’s figures showed the French bank was a mandated lead arranger in €1.4 billion of EMEA non-recourse mortgage loans to the end of Q3. It provided around €68 million of a €250 million June loan to Valesco Group to finance the acquisition of the Sequana Tower office building in Paris – one of the stand-out office deals in Europe this year. It also provided £50 million of a £309 million loan in March for landlord Canary Wharf Group’s Newfoundland residential tower in London’s Docklands. In March, it provided €50 million of a €100 million loan to Blackstone for a portfolio of five four-star resort hotels located in Sicily and Sardinia, which are due to be repositioned as five-star hotels.
*as mandated lead arranger per Dealogic

Standard Chartered Bank

Senior, mezzanine, whole loan, development,
loan-on-loan lender

Active in UK, Ireland, Nordics, France, Germany, Benelux

Lending in 2022: €2.5bn
Lending in 2023 to end Q3: €1.5bn
Loan book at end Q3 2023: Undisclosed

The UK bank’s lending in 2023 to the end of Q3 was 85 percent weighted towards new financing, with the remainder for refinancing. In May, it partnered with UK lender Barclays to provide Qatari Diar and Canary Wharf Group with a £183 million construction loan for the final stage of the 13-storey Southbank Place residential and retail scheme in London. In June, it provided £122 million to Blackstone to support the acquisition of 18 UK logistics assets. It was sole underwriter in the transaction and subsequently syndicated a portion of the loan. In August, the bank was a joint underwriter in the refinancing of a science and innovation park in the Netherlands.


To read more from our Active Lenders 2023, click here