Real Estate Capital commentary
- As 2012 draws to a close, the biggest UK financing deals in the market are for hotels. DekaBank and Credit Agricole are refinancing the maturing loan on London’s Savoy for the landmark’s royal Saudi Arabian owner, while three banks are underwriting and arranging finance for ADIA of Abu Dhabi to buy a large portfolio of Marriott hotels. Deutsche Bank is still working on the refinancing of 61 UK Holiday Inns, while Blackstone has won the mandate to form a syndicate for the Barclay Brothers, who control the Maybourne Group and need to refinance it.
- In continental Europe, Citibank and Royal Bank of Scotland are providing US private equity fund Lone Star €500m for its acquisition of the German government’s property holdings in the former East Germany. The two banks had previously provided loan-on-loan financing for Lone Star.
- pbb Deutsche Pfandbriefbank has closed deals in the past weeks on German retail and French office and retail, for Catalyst Capital, Tristan Capital, Invesco and Tour Eiffel.
- Mezzanine deals were thin on the ground, with mid-teen returns very difficult to find.