Real Estate Capital has launched its first annual awards to recognise the best deals and firms active in the real estate debt markets during 2014 both in the US and Europe. After looking back over 2014, we made our pick of the firms and the deals that made headlines in what turned out to be the busiest year […]
1 min read · 16 December 2014
The Bank of England’s stress testing of the UK banking system has exposed The Co-operative Bank, Lloyds Banking Group and Nationwide’s real estate loan books as being the most volatile in the case of a severe economic downturn. In the hypothetical scenario created by the Bank of England, which included a 30% drop in commercial real estate values, it was expected that the Co-operative Bank – the only bank to fail the broader stress test – would have to write off 19.1% of the value of its loans, Nationwide 16.3% and Lloyds 16.1%.
4 min read · 16 December 2014
TIAA-CREF has provided a $79.2m loan to Crow Holdings Capital Partners for its acquisition of the Festival at Bel Air shopping center in Bel Air, Maryland. The seven-year loan (three years interest-only) carries a 3.9% interest rate at a 70% loan-to-value. The 437,227 sq ft property had previously served as collateral for GS 2005-GG4, a $76m CMBS loan.
1 min read · 15 December 2014
M&G Investments’ real estate finance team has deployed £2bn of capital in Europe in 2014. The figure illustrates the institution’s established presence in the European real estate lending market, rivaling some of the largest banks in the sector.
2 min read · 15 December 2014
Deutsche Pfandbriefbank has lent fund manager Orchard Street Investment Management £47.75m, secured against St Andrew’s Retail Park in Hull. The five-year loan reflects a 50% loan-to-value on the £95.55m purchase price. The 327,000 sq ft asset was bought from Threadneedle Investments in September. The purchase price implies a net initial yield of 6.1%.
2 min read · 15 December 2014
Guggenheim Commercial Real Estate Finance has provided a $78m loan to MetLife and M&J Wilkow for the joint venture’s acquisition of Magnolia Park in Greenville, South Carolina. Affiliates of MetLife and M&J Wilkow formed a joint venture for the $155m acquisition of the approximately 468,000 sq ft outdoor retail center, with MetLife taking the majority share at a 90/10 split.
2 min read · 12 December 2014
New lending to UK real estate is up nearly 50%, hitting its highest level since 2008 according to De Montfort University’s half-year Commercial Property Lending Report. The report, which covers the six months to June 2014, showed that new lending totalled £19.6bn in the first half of this year. This was a 46.3% increase on the same period last year when £13.4bn was lent.
3 min read · 12 December 2014
A joint venture between HSBC, Landesbank Baden-Württemberg, Bank of China Limited, DekaBank and Union Bank have provided Vornado Realty Trust with $575m for the refinancing of Two Penn Plaza. The real estate investment trust announced the financing package for the 1.6m sq ft Manhattan office building this week. The loan, which carries a margin of 165 basis points over LIBOR, matures in 2019 with two one-year extension options. The company said it realized net proceeds of approximately $143m on the deal. The real estate investment trust announced the financing package for the 1.6m sq ft Manhattan office building this week. The five year interest-only loan, with two one-year extension options, carries a margin of 165 basis points over LIBOR, and the company said it realized net proceeds of approximately $143m on the deal.
1 min read · 11 December 2014
The UK government has announced a £3.5bn loan guarantee scheme to encourage private sector real estate projects for the rental market. The programme is designed to attract institutional capital to invest in private rental-only housing developments, writes Real Estate Capital’s sister publication PDI. UK-based asset manager and direct lender Venn Partners has been mandated to manage the scheme.
2 min read · 11 December 2014
Deutsche Annington, which has made a €3.9bn offer for its main rival Gagfah, has raised €1bn by issuing a seven-year bond. The residential company will pay a coupon of 4%. The bonds are BBB- rated.
1 min read · 11 December 2014
