OUT IN FRONT The best performers of 2017 - 2017 AWARDS - Real Estate Capital
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
www.recapitalnews.com for europe’s real estate finance markets awards & annual review 2017 | march 2018 OUT IN FRONT The best performers of 2017 2017 AWARDS The winners revealed THE YEAR IN REVIEW The crucial stories revisited
Deutsche Bank
db.com
Building strong and sustainable
solutions for our clients.
Deutsche Bank Commercial Real Estate Finance supports
property owners on a broad range of strategies across Europe.
We are proud to be recognised in the 2017 Real Estate
Capital Awards.
This advertisement has been approved and/or communicated by Deutsche Bank AG or by its subsidiaries and/ or affiliates (“DB”) and appears as a matter of record only. Without limitation, this
advertisement does not constitute an offer or a recommendation to enter into any transaction. The offer of any services and/or securities in any jurisdiction by Deutsche Bank AG or by its subsidiaries and/
or affiliates will be made in accordance with appropriate local legislation and regulation. Deutsche Bank AG is authorised under German Banking Law (competent authority: European Central Bank) and,
in the United Kingdom, by the Prudential Regulation Authority and in the United States by the Federal Reserve Bank. It is subject to supervision by the European Central Bank and by BaFin, Germany’s
Federal Financial Supervisory Authority, and is subject to limited regulation in the United Kingdom by the Prudential Regulation Authority and Financial Conduct Authority.Deutsche Bank AG is a joint
stock corporation with limited liability incorporated in the Federal Republic of Germany, Local Court of Frankfurt am Main, HRB No. 30 000; Branch Registration in England and Wales BR000005 and
Registered Address: Winchester House, 1 Great Winchester Street, London EC2N 2DB. Deutsche Bank AG, London Branch is a member of the London Stock Exchange. (Details about the extent of our
authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available on request or from https://www.db.com/legal-resources under the
heading “Corporate and Regulatory Disclosures”.) Securities and investment banking activities in the United States are performed by Deutsche Bank Securities Inc., member NYSE, NASD and SIPC, and
its broker-dealer affiliates. Lending and other commercial banking activities in the United States are performed by Deutsche Bank AG, and its banking affiliates. Investments are subject to investment risk,
including market fluctuations, regulatory change, counterparty risk, possible delays in repayment and loss of income and principal invested.Copyright© 2018 Deutsche Bank
EDITOR’S LETTER
The year debt became trendy
DANIEL
CUNNINGHAM
Editor EDITOR
Daniel Cunningham
Tel: +44 207 167 2033, daniel.c@peimedia.com
Reporter
Alicia Villegas
If there is one clear message to take from ray of sources.With more debt capital to deploy,
Tel: +44 207 566 5470, alicia.v@peimedia.com 2017, it is that European real estate debt is it is essential that conservative lenders remem-
Production Editor well and truly on investors’ radars. ber their risk parameters and those seeking
Patrick O'Donnell
Tel: +44 207 566 5465, patrick.o@peimedia.com During the year, private real estate debt ve- higher returns in less liquid parts of the market
Design and Production Manager
hicles with a Europe focus raised in the region back only those sponsors most likely to add val-
Denise Berjak of $10 billion of capital, more than double the ue to their investments.
Tel: +44 207 167 2036, denise.b@peimedia.com
amount corralled in the previous year, our data For investors in an increasingly competitive
show. space, entrusting capital to experienced man-
Marketing Solutions Manager The reason is that many parts of the market agers of debt is paramount.
Julius Pike
Tel +44 207 566 4286, julius.p@peimedia.com started to look fully priced during 2017. Prop-
Subscriptions Manager erty debt can generate attractive returns – not WINNERS
Avinash Mair
Tel: +44 207 566 5428, avinash.m@peimedia.com
dissimilar to equity – but with the defensive It is the time of year you’ve all been waiting
quality that loans are cushioned from losses, for, when Real Estate Capital recognises the
Senior Editor, Real Estate should asset values take a dip. In other words, organisations, and the deals, which stood
Jonathan Brasse
Tel: +44 207 566 4278, jonathan.b@peimedia.com
investors still believe in the European property apart in the preceding year. From p. 3 you
story, but are looking for access to the market’s will find the results of our 2017 awards, voted
Director, Digital Product Development
Amanda Janis returns with an added layer of comfort in this for by our readers.
Tel: +44 207566 4270, amanda.j@peimedia.com
late stage of the cycle. Without giving too much away, here are a
Editorial Director
Philip Borel
Throughout 2017, investors and lenders felt few observations: Senior banks with large bal-
Tel: +44 207566 5434, philip.b@peimedia.com the need to deploy. On a relative-value basis, ance-sheet capability which have steadily pro-
Publishing Director real estate was a more attractive prospect than vided liquidity throughout the cycle have done
Paul McLean
Tel: +44 20 7566 5456, paul.m@peimedia.com
alternatives – including fixed income. The un- well; the activities of the investment banks,
derlying property markets generally continued during a year in which private equity sponsors
Chief Executive
Tim McLoughlin to perform, with occupier demand high and required finance for complicated, time-pres-
Tel: +44 20 7566 4276, tim.m@peimedia.com
vacancy rates dwindling. Economic growth sured transactions, have also been recognised;
Customer services
Fran Hobson (London) +44 20 7566 5444
across most European nations and a perceived and the contribution of alternative lenders has
An Nguyen (New York) +1 212 645 1919 reduction in political risk with France’s election been rewarded, perhaps most notably in our
Natallis Yeung (Hong Kong) +852 21533844
of Emmanuel Macron also helped make the development financing deal category.
case for European property. The European real estate lending markets
However, lenders remarked throughout the were not without their challenges during 2017,
year that sourcing the right deal has become but our awards demonstrate that there are
more of a challenge. There is a greater volume plenty of organisations out there keeping debt
© PEI MEDIA LTD of equity at play in the sector, limiting the need capital flowing.
No statement in this magazine is to be construed as a
recommendation to buy or sell securities. Neither this
publication nor any part of it may be reproduced or
for debt, and investors from outside the region,
transmitted in any form or by any means, electronic or
mechanical, including photocopying, recording, or by any including from Asia, have relied on banking re- Enjoy discovering who our winners are.
information storage or retrieval system, without the prior
permission of the publisher. Whilst every effort has been
made to ensure its accuracy, the publisher and contributors
lationships from their home countries in cases.
accept no responsibility for the accuracy of the content in
this magazine. Readers should also be aware that external Despite concerns about low yields and the
contributors may represent firms that may have an interest
in companies and/or their securities mentioned in their prospect of rising interest rates, the appetite for
contributions herein.
real estate investment displayed in 2017 is likely
For subscription information visit to continue throughout 2018. Debt will be
www.recapitalnews.com
plentiful and will come from an increasing ar-
MARCH 2018 WWW.RECAPITALNEWS.COM 1
Contents
2017 AWARDS AND ANNUAL REVIEW
3 THE YEAR IN REVIEW
18
18 Lessons learned
Property debt funds continued
capitalising on the strong appeal
of debt as an asset class in 2017
20 Q1: Gaining confidence
The UK property debt market
proved resilient as global
investors saw in London a haven
20
despite Brexit
2017 AWARDS WINNERS
3 A full run-down of the firms and 22 Q2: Capital flows
deals which won accolades in Property lenders benefited from
the Real Estate Capital Awards the wave of Asian investment into
2017 the UK and the continent
17 2017 awards winners at a glance 24 Q3: Financing mega-deals
Lenders showed desire to finance
large portfolio acquisitions by
private equity firms
3 26 Q4: Debt appeal
The first CMBS deal in 2017 and
28
new debt fundraising showed
investor demand for debt
IN FOCUS IN REVIEW In Focus
LASALLE INVESTMENT
MANAGEMENT IN FOCUS:
LASALLE INVESTMENT
MANAGEMENT
‘The mezzanine
opportunity
was
not a windo
28 A selection of the market players
w’
Fresh from raising
strategy, LaSalle a third wave of capital
Investment Management for its lending
Amy Aznar tells
Daniel Cunningham debt boss
needs those that the market
willing to provide
higher leverage still
Tment Management
vide it, reflects
he market for
zanine real estate
changed considerably
seven years since
Amy
European mez-
finance has
in the
LaSalle Invest-
first raised capital
of debt investments Aznar, the firm’s head
to pro-
write the whole
underwriting
senior portion
around certainty
loan ourselves,
risk, and then
later.
taking the
sell down the
more sophisticated The market has become
and borrowers’
of execution have
demands
and special situations. changed.”
In 2010, LaSalle THE SWEET
non-bank debt became one of SPOT
fund managers the first This year, Aznar’s
of debt finance to offer strips
between the 55 million of fresh team has raised £600
cent loan-to-value and 80 capital, targeting
Real Estate Capital interviewed
parts of the capital per- the market that parts of
to opportunistic remain
property investors stack Alongside a capital-raising under-banked.
needed higher which
leverage than the development strategy, for its residential
provide. banks could LaSalle has brought
in £334 million
For lenders, internal for the third in
rates of return mezzanine and its series of
the order of up whole loan funds
to around 14 percent in Real Estate Debt – LaSalle
achievable, as private were Strategies (LREDS)
– which is targeting
mid-teens returns equity players generated III
from investing year “well in excess”,a final close in Q3 this
recovering real in Europe’s says Aznar, of
estate markets. decessor fund, its pre-
returns thinner Today, with which closed
on £600 mil-
and lion in 2013.
market, IRRs look a more liquid financing
more The first LREDS
digits. As the market like mid to high single
has evolved, so its business throughfund generated much of
product, Aznar has the financing acquisitions
explains. by opportunistic
“We started out investors
lending pure mezzanine Elliot, Ares Management such as Benson
and borrowers and Blackstone.
would come to Indeed, LaSalle
a junior tranche. us to ask for provided several
They nine facilities mezza-
with their preferred would then pair us up to the latter
as it built its
senior lender,” Logicor logistics
“Over time, that she says. platform from
LEADERSHIP which it recently 2011 and
LLOYDS’ tinues. “We team morphed,” Aznar con- sold for €12.25
IN FOCUS: up China Investment billion to
and we approach with the senior lender Corporation.The
the borrower fund, and now second
We blend the together. the third,
margins, or, alternatively, acquisitions, although continue to target
we volume of business there is an increasing
over 2017
very
made it
to be had refinancing
JULY/AUGUST
market partici-
“We’ve want to 2017
to
by property recovery clear we our capacity WWW.RECAPITALNEWS.COM
Lloyds is viewedstaged an impressive bank and increase 31
the
pants as having The bail-out of mean that do the
larger
crisis. s and more
Profile
since the environment than s”
regulatory
the tighter within stricter parameters
underwrite transaction
its lending
is
seen to be
broadening complexMcDougall
but it is also Madeleine to
historically,
capabilities. now head of CBRE so we want
its lending base and
LEADERSHIP Dakin, delever- our client but also continue
IN FOCUS:
LLOYDS’ While Richard was responsible for increased
existing clients lent £8.6
bil-
Capital Advisors, legacy BLACKSTONE
real estate
positions, support our relationships.We from
team new it was down of
aging the
bank’s the real estaterole in to create and although context
for rebuilding played a lion last year, 2015, that was in the so we’ve
Borrowing
the credit
Feeney. McDougall figure
£9 billion
in volumes,
belongs to popular and well-known of investment McDougall says.
a
that and is finance circles. ago and a reduction
market share,” after the Brexit
property years grown our deal was pulled course we
and delivering
in London came in three in developing Not a single quick to add: “Of
“Madeleine
had an impact of build- is norms, but
immediately in terms vote, Feeney in line with market
franchise clients, he says.
our institutional with private equity adjust pricing is enduring,” be closely
funds and our commitment McDougall, will
ing relationships sovereign wealth brought
with and she Risk, continues five percent loan-to-value but
interacting
money managers, to that. It was “Sixty
of Blackstone
monitored: than two,
tellyears ago,
three and we
traditional and dynamism
Jay and we Will neededSkinner
Gadi
a great energywe had the person is less regular
source the debt the cycle.
environment
howwethey are in an
uncertain
clear to me Daniel Cunningham
says. we lend through is a jux-
team,” Feeney deals firm’s
have included
European to make sure deals
wantproperty the 50s.There values,
inside the behind the is in
PHOTOGRAPHY:
recent million LTV rental
McDougall’s loans totalling £409 Lazari Our average the market in that tailing off,
in
A
aredebt falls to prin-
two owned firm equity firms taposition The market,the
job of sourcing that
arranging for privately s many US it toprivate
refinance in the office to grow;Jay worked
and Will Skinner.
Jaycontinue
(€453 million) January, allowing especiallycipals Gadi values
from Shethealsolate-cycle yet capital Khera,
in withdraw assets. and former finance head Anil
Investments central London European estate markets, lastalongside
realfinancing much longer.” last August Univer-
after 11
MARCUS
key left Blackstone Montfort
six of its bank’s 2016of them all – Black- can’t who recent De hisbanks’ in the
rented
role in thethe largest £185 million most to
The years launchUK own role private
played a key O2–arena, withtoaraise and deploy capital group fellSkin-
stone continues was subsequently sity report
highlighted
sector residential from that firm.to
development
of London’s its 50 volumesLondon
ROSE
for European percentstrategy. Bank Although to halffrom New York
of 2016
which
facility, of The and Commercial firm ismarket.ner relocated from the secondcollectively pro-
New York-headquartered
to Industrial 28 percent
last September.
syndicatedinvesting through its opportunistic funds,by of this year, they go about in H1.
financ-
alter- first half
So, how to the market
does Blackstone
retail, logistics, of China. Blackstone Real Estate Partners Europe IV,the more than £8 billioncapitalised banks out
s still offices, is that, despite having 2014, vided ing its deals?
lending. It’ closed on €6.5 billion initMarch
whichCLIENTS is onehave of thea best
track record is about
of delivering
advantage clients, I European BREP
fifth whether fund, “We’re “We “The challenge that when afterwe
natives. The headed institutional sets at OVERSEAS as well as its
foreign capital,
private equity,
on €6.6 billion there,” onsaysdeals, so lenders know looking
McDougall.
most recently across varied
clients “Ever more which had money or USclose
a recent pick the
perception, and it.
the phone to them
up market
askA them
key
Asian insurance one of the changing and growing having
“is says
Jay.
have experience in February.
into thetightmarket, so expansion Black- for terms it isbase
client not time wasted,”
she adds,
of seven, an Europe,
beenacross
hasyields the existing a deal to be done.” We had a
different banks.”managing a team including is coming Despite
at Lloyds to target properties to servingto which strength “There’ ofsthe business,”
usually
to innovate.
top
65, be able team identifies a poten-
Previously charge of evolutions stone continues
very British
franchise As the to equity of our balance
at the
is now in Her chal- beyonditacan apply but from
aggressive
itsUK every
asset management the support
Jay andin terms
Skinner immediately
McDougall support staff. active in the
s
Feeney. “It’ pur- very
purchase,
tialstrong franchise the larger-ticket
from bankers and resurgence of Lloyds’ clientstechniques. includes opportunistic
That comments in to accentuate
to evaluate the debt component
Change
front-line begin I came
of theofworld,” proper- sheet. the originate-to-dis-
DATA
the in train well-located is part of our
business is to continue set corner chases high-quality,
been particularly of the deal. “The
and grow financing
l real estate lenge which Feeney bank from Madeleine
has
as well as core-plus
be, hold underwrites
assets fortolonger explains Skinner. “Wewas work the
business real estate
business,
he joined
the an area ties, need toit,continue it,” iswetheneed
mantra. underwriting,”
model.” of the team Lloyds
day one to
commercia the handover within the ago when Global Investors in and will
activeperiods. “Buy it, fixshifting sell and tribute
with the rest
that
from
figures show andinstructure syndi-
over Lloyds’ about
PARK is a crucial aspect
lieutenants 2015, Feeney four years with it.”
of the bank 2016, of
Feeney’s closestresponsibilities. In
OF HENDERSON
then HendersonIn 2013, Lloyds was the market
finance ismoving Dealogic through the pricing
l has takenm talks to them job at one of the take over
his
real estate
unit into
six THE RISE
IN FOCUS: what was
TH Real Estate.real estate loans that
becauseDebt
our franchise
business. During 2016, time when
acquisitions
reins at a by borrow-
and think
UK’s largest distribution
the debt. On a large of €1.5 billion.
portfolio transaction,
McDougal and is now to keep thesupported the want to increase
is in the top banker by many inBlack- the equivalent loans
Madeleine Daniel Cunninghalater, McDougall estate lenders. the toxic for a state takes
were arrangingwemultiple
split the commercial led by a senior refinancings
McDougall cating
that might mean it very clear underwrites and
that teams, each group; as busy offloading to the bank’s need a ‘good’ perceived
are€5.5 billion, making due to madeby geography or sector. We
John Feeney. biggest jobs in UK UK of around “We’vedown
largest real happened alongside component on an individual client rebuild the ings clearers more risk-aversesponsor. broken do the larger time,
O
UK’s clients team, had contributed was to become the year’ s largestBrexit vote. to the the
cost
At ofsame
capital
ne of the become and focused
job as a property stoneto perhaps
have the UK’ssharplyargues. our capacity optimise
for a way totransactions.
The promotion Feeney, who has he took
look
changed hands institutional major pri- bail-out. Feeney’sbank’s reputation market following dropped from
debt side to achieve a better
equity
property finance Madeleine Financing volumes mode, she which thecomplex
when of her predecessor,head of corporates,
a role well as McDougall’s assets,
included
clients,
listedsome of Weber's d
clients book, repair
the business.
reboot the they would the uncertaintyin is2015
€13 billion – a year during
in growth
we have
sensibly
onmore
29
in August, became Lloyds’ global departing Clare Francis.
set-up
thelarge, institutional of cash
international generally But the business including the purchase
outcome.”
officially new“They
intoin the which are throwing
are
vate groups,
huge amount
off adevelopers, backgroun lender and to what they
said
“taking three years
mega-deals,
“In the last
several Blackstone will employ
In some cases,WWW.RECAPITALN
EWS.COM a debt
and Will Skinner
McDougall Banking’s on from the US with theGoldman
Sachs
transition and remains soundrealvery
corporates.
opportunistic,”
estate a wider client McGoldrick,
the
“They’ve stuck one market player, of GE Capital’s European
property assets,
broker such as Eastdil Secured,
particularly From left: Gadi Jay
Bank Commercial mantle fromfrom his native and private
flow. That doesn’t locations, of Mark year, €7 billion experience of a
head of Lloyds assuming the
Discussing Feeney
business
notes thatGoldman
a mortgage in core
simply
buying
handling
“The underlying
A protégé turned
private
do,” comments doing full underwrites.” were financed.The previous when the advisor has prior
that John’s Weber.“Now, “We’reI’m
Parking
generating oppor- same across
bank.2000, he launched banker tickets,
Profile
as
real estate
division, within the in job, McDougall
situations unit.
advice. “It helps pickadmits
Former his assets, but McDougall.
explains the
investment in the press on bigger had been borrowed.
himself promoted banker built a special for a mentor
was I can value-add
base,” are chief known held
XXX XXX
John Feeney, became a property on hand McGoldrick floor, so atchimesmaybe in fundamentalsvalue-add or development
equity
Nick Weber
has
IN FOCUS: strat-star banker Mark the same
onreunited McGoldrick
be fair,” in real estate as core
tunistic returns.” and and in ApriL 2017
with“To such it’s still investment
still He ‘Goldfinger’, Wall Street
McDougall as an investment Lloydsat the bank. she says. Kellettneeded to”.Definitions client types; Weber argues. roles on 2017 CApiTAL
working joined brains,” firm Mountreally sale which way”, prominent NOVEMBER 22 rEAL ESTATE
2003, after the industry. She private equity
“you haven’t
of
deal was the saw one“get blurred every targeting net returns
to private equity.
capital
in 2014 tothe latter’sFeeney, European Goldman
egist within his most notableof McDougall Park is Weber joined
Pfandbriefbank with 2009, whereThe appointment Lone Star following Henderson meaning
to 16 percent, NOVEMBER 2017 In 1994, out of AXA INVESTMEN
from pbb
Deutsche relationships Jury’s Inn to 14 percent to New York.
“I came
bank’s growing Just three years of hotel chain investors of 18 percent
the order of of value-add
Sachs in and ended
up
REAL ASSETS T MANAGERS
manage the clients. a restructuring. on his own in July
2016,
gross returns in a mix chemical
engineering
“One of
my
institutional that’s says. –
an array of blurring of
out million “I think he
He struck Park, with $500 Cap- 20 percent. There’s a real on Wall
Street,”
Mnuchin,
the US
was Steve
Park’s Nick launching Henderson Stone Point market
US investor and opportunistic. impossible in this first bosses
of backing from players Kuwait s near
Henderson lines and it’
secretary.”
treasury with McGol-
targeting as Middle Eastern are a case in
working
Weber is
PROFILE:
s ESTATE CAPITAL ital, as well Wafra Investment to distinguish.” Weber began New York AXA IM
Authority and this year, it was Metropoles — REAL
opportunitie and in Goldman's
28 REAL The UK Hilton “We bought London he ASSETS
drick in 1995
Profile
value-add Investment By October of In 2000,
market. they
Advisory Group.have raised $970 million
department.
point, he explains. hotels, and together mortgage with the
bank to
in a late-cycle of debt understood
to co-invest- largest
Birmingham’s revenues of around £100 mil- to Europe depart-
– with additional
relocated
wall to billion. £31 mortgage
Europe’s investor capital equity to around $1.4 have combined throw off nearly It’s launch a
European Kong to
is helping its but meeting million) and a lot of capex.
heading
to Hong
ment bringing
Protect
maturities he tells lion (€112 ment, before business
not seek publicity, in a but they need distressed
Weber does London offices, located million in cash, probably not even core-plus,
create them, run its non-Japan the
to build
positionthe
to London
DEKaBaNK him in his central close to Victoria
Station,
not a core deal, believe we’ll earn opportun- and returning
Daniel Cunningham
unit.
discuss situations
of Georgian rowhousefinds him eager to and but we definitely bank’s special
he rejoined
McGol-
F
former boss Real Estate
Capital in it, £500 In May 2009, firm,
his firm’s place istic returns.” for exactly private equity
Sticking to
35 The year in figures
Nick Weber, market, assets, bought Ton- latter’s
or European business The two the
the current strategy. investor drick, at deals included
Mount Kellett’s estate fund man- fit into the sold by private mogul Weber’s
of real how debt will million, were 84-year-old property to
Mount Kellett. and sale
of the
and founder Park, the state, owned
by understood the purchase
with a 90
per-
The assets were
Henderson leading Timothé
agement firm tend to have MATURITIES
deal, in September Arthur Matyas. of relatively expensive
debt hotels group, Rauly, AXA
the mission
WAVE OF Jury’s Inn 3.25 times
equity
Investment
opportunities Park’s first Etoile tried IRR and
right investment Henderson Le Méridien have £420 million Tonstate had initially and cent-plus Real Assets’ Managers –
them. Park’s the plush Mount Kellett them.
a story behind since Henderson 2016, was bought from attached to Weber
for £700 million.built a rela-
multiple.
was hit by
its oil and funds group,new head of
deals
In the 18 monthshas pursued a value-add hotel in Paris, Subsequent to sell the assets to have Mount Kellett reached
a deal Cunningham tells Daniel
Capital. five- in and
firm
launch, the a late-cycle European
prop-
and Cedar portfolio, a Matyas are
understood a deal agreed gas investments Manage- maintaining that
picked a UK multi-family the UK’s larg- for weeks had Investment
the firm’s
strategy amid assets the firm has DekaBank’s real estate boss Anni
include Hönicke and two tells
of tionship and handshake. with Fortress funds. “I
stayed portfolio
A
The and hotel bank a is his priorityloan
erty market. the largest hotels in Paris Daniel Cunningham why the principle over
co-manage
German
star Athens Londonwill and Birmingham ment to September
– the despite Kellett through
up – including building in Madridcontinue to target large, prime est hotels deals, at Mount the book
before XA Investment
a grade A office to them. But, as Metropoles.Trump monetise
London and prime feel
Brexit, European electionsHilton and Donald debt maturities
creating 2015 to the right
fiduciary – Real Assets Managers
creates I felt it was
I
huge CRE is by far
– have a distinctlythe current market DEBT years of
faces five Park
leaving. like 80 percent largest of
the non-bank the
Something
Weber explains, such properties to generatet is the day after UK prime minister MATURING admits. 2016, Europe
Financialof‘passporting’
at the end for firms
, heHenderson
like says, is a thing to do.
real estate
was turned ers which
of the European have carved lend-
for Theresa May revealed the country’s Calculated a slice
opportunities returns. relatively recent phenomenon, and lenders
opportunities of the European left.” market. real estate
of investment before I financing
‘opportunistic’ at our pipeline, 75 percent Brexit plan and German real estate like140
DekaBank would adapt if those rights into cash
some time
off to figure The investment
(€bn)
“If you look where something banker Anni Hönicke is visiting were120 lost. “Don’t forget,” he says, noting After taking out on his insurance arm of the
from situations by debt
London. the bank’s US and Japanese operations, Weber struck tive lender
giant was
the first
French
deals come out his future,
to mature
Hender-
either motivated a tenant The revelation that the UK will leave 100
“DekaBank is a lender in various places 2016, launching debt, back
to enter
European
alterna-
needs to happen, burning off, or bythe European single market could under- outside80the EU already. So things will be
own in July good friends
with in
the banks 2005. After the crisis,
property
swaps says. He remains
maturity, by longer,” hestandably son Park. and centre” retrenched when
be held much there needs spook a foreign banker whose different, but not necessarily new to us. who is “front money managers and institutional
Statistics which tell the story of
of debt due
he
that cannot 60 McGoldrick,
list for investors, (known as entered,
Weber continues, business is partially built on lending into
deal. It couldBut if Hönicke, global head of
“As a euro-source lender we’ll have to AXA the business
To buy well, aspect to a thetoUK. be careful 40in the lead up to Brexit as there 2023 on his reference and commercial tember 2015 Real Estate until
repay as smart
to be an ‘off-market’a property owner real estate at Frankfurt-based DekaBank, could be20 extra volatility in the cross-cur- 2021
2022
adds: “Mark’s of the pack. rebrand) was already a Sep-
a seller ahead
be a bank pushingloan, or it could isbeworried, she isn’t showing it. “The big
2020
Volume
rency swap market. Whilst2018 this has the 2019 as they come.” AXA IM
its to achieve 0 Netherlands
ing a final – Real Assets is
or refinance after failingshock was last June with the leave vote,” potential to raise 2017our cost of funds, we Iberia close on now near-
a swift deal France gled senior its 10th
eager to seal necessarily
she
sale. “It doesn’t mostnot
says. “That was the surprise paradigm still remain confident about Germany our relative
COM 25 Senior 10) property debt fund
commin-
of the UK
an open-market situations, but shift, yesterday’s speech.” competition position.” which had
PHOTOGRAPH:
WWW.RECAPITALNEWS. by January raised (CRE
mean distressed have involved a Even motivated
before the referendum, Hönicke “Before the Brexit result, the UK was and is targeting €1.4 billion
with a final
done insists, her view on UK lending was fixed. a perfectSource: CBRE Research
market for us,” Hönicke adds, close expected €1.5 billion,
deals we’ve The firm
invests in this summer.
adds. to“We suchthat whatever happens we
decided “and now the people have decided not to
seller,”Weber source behalf of the
JAMES CLARKE
willtonot change our relationship with be part of the EU, it is just in2018 line with AXA insurancedebt markets on
Weber is well-positioned London more than companies
After relocating the UK market. It is such a transparent manyDECEMBER
other big 2017/JANUARY
markets.” 40
10 different third-party clients and
opportunities. market, it’s so professional and there is After 10 years of doing business in the countries. from
Its real estate
such a deep2018
investor community. It has so UK, DekaBank has applied for its London €10.5 billion. lending book
2017/JANUARY stands
DECEMBER many positive features. All that aside, the outpost to be upgraded from a represent- the platform With infrastructure at
market needs transactions, and we really ative office to a branch. The paperwork comprises debt,
In February, €14 billion.
believe that there will not be such a big is being processed with German banking the real the job
estate of managing
impact.” regulator BaFin, which also needs to be fell to Timothé funds, debt and
company Rauly, who equity,
CAPITAL Speaking to Real Estate Capital with approved by the UK’s Financial Services joined
REAL ESTATE in 2006
24 Hönicke is Mark Titcomb, head of Deka- Authority. from French the
REIT
Bank’s UK representative office. There will “We’ve done more than 40 transac-
the 2017 European real estate
be a few extra obstacles for an EU bank tions since we set up here and we have WWW.RECAPITALNEWS.
lending into post-Brexit Britain, Titcomb been arranger or co-arranger on each,” COM
29
26 rEaL ESTaTE caPITaL March 2017
DekaBank’s anni hönicke and Mark Titcomb
finance sector
2 REAL ESTATE CAPITAL MARCH 2018
A t long last, the winners of the
Real Estate Capital Awards 2017
can be announced. Our annual
awards, now in their fourth year,
recognise those organisations and deals that
stood out from the crowd in European real
estate finance during the year.
In an indication of the f luid nature of
Europe’s property finance markets, firms
that have not previously been in the run-
ning have scooped certain categories. The
debt advisor award, for example, has been
won by one of the market’s busier bou-
tique firms, perhaps demonstrating the
A note on the methodology: In the first
instance, companies were invited last
November to make submissions as to why
they should be up for consideration. These
submissions were taken into account as our
editorial team determined who ought to
make the cut.
Without giving too much away before increased emphasis sponsors are placing After a good deal of debate at REC HQ
you have had a chance to delve into the on intermediaries in deals across the and discussions with market contacts,
following pages, the year’s biggest winners spectrum. shortlists of four were put together. Then,
include US private equity firm Blackstone In total, 17 awards were up for grabs, in December 2017, we put the awards to
– which proved to be a defining player in recognising lenders across the banking the vote, which closed in early January.
the 2017 market – picking up gongs across and alternative segments of the market, The Real Estate Capital Awards are not
four categories. Prolific Dutch bank ING, borrowers from the fund management decided by judges, but by you, the readers.
which has had a solid run in previous years’ and listed markets, investment and devel- A big thank-you to all who took the time to
awards, has also emerged victorious in one opment finance deals and the buyers and vote. We hope you enjoy reading through
of our key categories. sellers of loan portfolios, among others. the results.
MARCH 2018 WWW.RECAPITALNEWS.COM 3
ANALYSIS 2017
AWARDS:
Bank lender of the year
WINNER: During 2017, ING’s real estate from €11 billion of new lending in
ING Real Estate financing business lent in scale across
several European markets, taking
2016. ING’s loan book stood at €28.6
billion at the end of 2017. “We were
Finance leading roles in some of the year’s fortunate to have so many of our cli-
largest bank financings. ents active in the market and the result
Within lending clubs, the Dutch is a top-quality loan book with the best
RUNNER UP: bank participated in the £644 mil- sponsorship,” Shields says.
MORGAN STANLEY lion (€725.6 million) loan to fund the Real estate lenders operating in
purchase of London’s ‘Cheesegrater’ Europe saw challenging market condi-
skyscraper in June; the €625 million tions last year. Shields, nonetheless, notes
financing in November of Berlin’s Sony ING’s European teams “have all partici-
Center; and the €900 million Decem- pated in the [bank’s] overall growth over
ber financing of Paris’s Coeur Défense the past three to four years.”
office building. Adding: “2017 was a very strong
Financing: Coeur Défense
The latter two deals “reflect a year for our European business overall
change in investor focus to mainland and we saw particularly strong growth
Europe and show the strength of in Germany, which benefited from our
“WE WERE FORTUNATE TO HAVE SO
CREDIT: OLIVIER PASSALACQUA
our local real estate knowledge”, says €130 billion deposit business with
MANY OF OUR CLIENTS ACTIVE IN THE Michael Shields, head of real estate ING-DIBA.”
MARKET” finance in Western Europe, the US, The bank is targeting growth in the
MICHAEL SHIELDS, ING REAL ESTATE FINANCE the UK and Asia-Pacific. German market, while it is also aiming
In 2017, ING wrote €6.8 billion in to increase its lending outside Europe,
new loans across Europe, albeit down in the US and Australian markets.
Insurance company lender of the year
German insurer Allianz Real Estate was provided a €300 million loan to finance
WINNER: a prolific pan-European real estate ‘Window’, a prime office building in
“THE REAL ESTATE lender in 2017. Amid its continued Paris. Since 2013, the insurer has lent
Allianz Real LOAN BOOK … IS expansion, deals were closed across in more than 10 European countries.
Estate NOW TRULY Europe in the UK, Ireland, Spain, Italy, In 2017,Allianz continued its drive
PAN-EUROPEAN” Austria, the Czech Republic and the into the UK market, reaching around
Roland Fuchs, Allianz Netherlands – in addition to Germany £450 million of debt exposure. The
RUNNER UP: and France, its core markets. insurer also co-wrote a €300 million
Aviva Investors Large loans, including €290 million debt facility to fund Amundi’s acqui-
to finance BVK’s LiffeyValley mall near sition of Amsterdam’s Atrium office
Dublin and £212 million (€239 mil- complex, in a deal dubbed as the larg-
lion) for London & Regional’s 55 Baker est single-asset financing in the Dutch
Street in London, contributed to the office market last year. In addition,Alli-
insurer meeting its target for European anz diversified its loan book – under-
new lending for 2017, with a volume writing almost two-thirds of a €160
of €2.2 billion. million loan for a portfolio of logistics
“The real estate loan book of Allianz assets across the Czech Republic.
in Europe is now truly pan-European Fuchs notes 2018 started with
and exceeds €6.3 billion,” says Roland “new and attractive finance opportuni-
Fuchs, head of European debt. ties”, as Allianz will continue to further
Allianz started lending in Germany grow and diversify its pan-European
Fuchs: Allianz’s European loan book ‘exceeds €6.3bn’ in 2011, then France, where it last year debt portfolio.
4 REAL ESTATE CAPITAL MARCH 2018
Blackstone is honoured to be
recognised by RE Capital
with these 2017 Awards:
Borrower Finance Loan Portfolio Buyer Financing Deal Of High-Yield Debt Fund
Team Of The Year – Of The Year The Year – Investment Lender Of The Year
Fund Manager
@blackstone @Blackstone @blackstone @The Blackstone Group blackstone.com
Real Estate Capital selected award winners by researching real estate news sources to compile a list of finalists, vetting those finalists and soliciting votes from
readers. Real Estate Capital and its readers use their own methodologies and criteria. Blackstone does not know the makeup of voters or whether such voters
included any investor in a Blackstone fund. A different set of voters may have achieved different results. An award is not representative of any particular investor’s
experience. There is no guarantee that similar awards will be obtained by Blackstone with respect to existing or future funds or transactions. This information is
provided solely for informational purposes and should not be relied upon as any indication of future performance of Blackstone or any of its funds or portfolio
companies.
AWARDS: 2017
Senior debt fund lender of the year
WINNER: Last year, DRC Capital invested and Berlin for the entire loan term, with
DRC Capital committed to more than £250 mil- the debt provided at a conservative
lion (€281.5 million) of new loans leverage point combined with an
through its senior lending pro- attractive amortisation profile,” Lat-
RUNNER UP: gramme, consisting of three tanzio explains.
Europe-focused debt funds. Lattanzio expects DRC’s senior
AXA Investment With fundraising for senior strat- offering will continue to benefit
Management – Real egies attracting around £750 million from the market opportunity pre-
Assets of capital in 2017, managing partner sented by the banking sector’s need
Dale Lattanzio notes fundraising for to de-lever due to ongoing regula-
Lattanzio: fundraising to increase 2018 is projected to increase up to tory reform, which is seeing alter-
£1.5 billion for the strategy. native lenders playing a larger role
“OUR SENIOR Senior deals done last year in the senior funding of commercial
DEBT OFFERING included a £42 million loan, with a real estate activity.
IS WELL-PLACED development element, in April to “We therefore feel that our senior
Evans Randall for an office and retail debt offering is well-placed to take
TO TAKE
scheme in London’s Midtown. Last advantage of the ongoing market
ADVANTAGE
year it also provided a €30 million conditions,” Lattanzio argues.
OF ONGOING post-development loan to an undis- The size of DRC’s senior loan
MARKET closed property manager to finance book stood at around £450 million
CONDITIONS” a multi-family residential scheme in by the end of 2017 and the firm
DALE LATTANZIO, Berlin. expects it to grow to more than £1
DRC CAPITAL “The scheme is let to the City of billion by year end.
High-yield debt fund lender of the year
Michael Zerda, head of Europe for financing and our first deals in purchase of £11.8 billion (€13.5 bil-
WINNER:
Blackstone Real Estate Debt Strat- Belgium and Finland.” lion) of buy-to-let mortgages from
Blackstone egies (BREDS) describes 2017 as Other areas of expansion UKAR in March. In June, it issued
Real Estate “transformative for the business”. included loan-on-loan financing, £323 million of construction debt
“We provide high-yielding debt corporate financings, regulatory to Consolidated Developments for
Debt products including mezzanine and capital release transactions with St Giles Circus, a mixed-use devel-
Strategies whole loans, but we expanded into banks and the purchase of per- opment in the West End of London.
new areas of business during the forming credit. In total, the firm Development finance is an
year,” explains Zerda. “We did invested €2 billion across 13 trans- attractive prospect, Zerda says: “In
RUNNER UP:
our first ground-up development actions in Europe, up substantially no other sector have we seen such a
M&G Investments loan, our first co-working office from 2016 during which around pronounced pricing shift as in UK
€200 million was written in what construction; from low 300s basis
Zerda describes as a “transitional points two years ago to more than
year” for the business. 500bps today, due to the pull-back
Deals in 2017 included mezza- from traditional lenders.”
nine participations including €230 BREDS lends from several
million in the financing of Office- pockets of capital, including its
First and a €188 million participa- $4bn-plus global BREDS III fund,
tion in the financing of the Finn- its BMXT US mortgage REIT, a
ish Sponda platform, both for its mezzanine fund called BREDS
parent company. BREDS also played High Grade and a series of illiquids
St Giles Circus: BREDS issued £323m of construction debt a minority role in Blackstone’s based in the US.
6 REAL ESTATE CAPITAL MARCH 2018
ALLIANZ REAL ESTATE INSURANCE COMPANY LENDER OF THE YEAR 2017 AWARD We are honored to have been recognized for our value creation capability in receiving the “Insurance Company Lender Of The Year 2017 Award”. We would like to thank the readers of Real Estate Capital who voted for us, our international team of experts for their hard work, our investor partners for their strong co-operation and our advisers for their support. Allianz Real Estate is one of the largest real estate investors worldwide. We develop and execute tailored investment strategies for the Allianz Group, focusing on direct and indirect real estate investments as well as on commercial real estate loans in the 24/7 gateway cities of the world. Key facts + figures • €56bn assets under management • 17 offices around the world with headquarters in Munich and Paris • 450 real estate professionals Allianz Real Estate Seidlstraße 24-24a D-80335 Munich, Germany www.allianz-realestate.com
AWARDS: 2017
Lender of the year in the UK and Ireland
Lloyds saw a “marked pick-up in the in regional markets across the UK. Last
volume of opportunities” in the UK year, for instance, it wrote a £61 mil-
last year, despite grim expectations for lion loan for a Birmingham office
2017, a year that many in the market building through the green fund.
expected to be slower than 2016, says “Our regional activity, supported by
Madeleine McDougall, the bank’s head our growing network of locally based
of commercial real estate. relationship teams, helped us to sup-
Lloyds’ two cornerstone pro- port some of the most high-profile
grammes – its Green Lending Initia- developments and investments outside
tive and its partnership with group the capital,” McDougall says.
insurer Scottish Widows – under- The collaboration with Scottish
pinned an increasing number of the Widows, has also enabled Lloyds’ CRE
bank’s transactions last year, McDou- team to arrange longer-term financ-
Standing tall: Madeleine McDougall and John Feeney
gall notes. ings. The £409 million financing pro-
Through its ‘green’ initiative – in vided to Lazari Investments to refi-
WINNER: which loans to environmentally sus- nance six of its key central London
Lloyds Bank Commercial Banking tainable buildings get a margin dis- assets, combined medium- and long-
count – the bank issued around £900 dated funding. The deal included two
million (€1 billion) by mid-January loans, a £118 million, 10-year facility
RUNNER UP: 2018. The scheme’s most recent provided through ScottishWidows and
financings in the UK have funded sci- a £291 million, five-year loan provided
Morgan Stanley
ence parks, pubs and development. alongside Royal Bank of Scotland and
The bank is also keen to back assets MetLife.
Lender of the year in Germany
Amid a competitive market, pbb segment of the market. In total,
WINNER: “THE BIGGEST Deutsc he Pfandbr ief bank the bank closed just 20 percent of
CHALLENGE WAS remained a high-volume lender in all transactions it analysed across
pbb Deutsche TO SELECT THE Germany last year – with €3.2 the German market.
Pfandbriefbank RIGHT BUSINESS billion of new loans written during Despite the increasing diffi-
the first nine months of 2017. culty sourcing deals appropriate
TO MATCH OUR
The German lender increased to the bank’s lending profile,
RUNNER UP: CONSERVATIVE pbb wrote significant financings
its new lending by 3.2 percent
LBBW RISK PROFILE” during the period, year-on-year, in its home market during the
Gerhard Meitinger
despite tough conditions in its last quarter of the year. Deals
local market. included the financing of the
“For pbb, the biggest challenge €112 million KARL development
was to select the right business in Munich, plus a €260 million
to match our conservative risk senior loan to finance the acqui-
CREDIT: KARL MÜNCHEN GMBH & CO.KG
profile,” says Gerhard Meitinger, sition of a portfolio of German
head of real estate finance in and Dutch logistics for Growth
Germany. Industrial Asset Net-Income
The bank noted more trans- Trust.
actions coming to the market “I like those deals best where
featuring weak assets or loca- we provide a funding solution
tions, while there was increasing rather than ‘just’ the funding,”
Done deal: pbb financed the €112m KARL development in Munich pressure on margins in the core Meitinger comments.
8 REAL ESTATE CAPITAL MARCH 2018AWARDS: 2017
Lender of the year in France
An active lender in its home country, Europe, who declined to disclose lend-
WINNER: BNP Paribas’s deals included partici- ing volumes.
BNP Paribas pating in the bank club that provided BNP increased its market share in
a €900 million loan for the purchase France, despite challenging conditions
of the Coeur Défense office building in the local commercial real estate
in Paris by a trio of investors, in France’s market, Polet explains. “This was
RUNNER UP:
largest single commercial property admittedly due to a scarcity of valuable
Société Générale transaction last year. assets, resulting in less market invest-
In 2017, in another club deal, the ment activity.”
French bank also provided a €480 mil- Meanwhile, more development
lion loan to Canadian real estate firm projects – including new construc-
Polet: growth in new loans Ivanhoé Cambridge to finance Natixis’s tion, renovation and refurbishment
headquarters in Paris. Also in the – with a different level of risk from
French capital, the bank co-wrote a traditional cash-generating assets
€250 million debt facility for a Euro- were seen in the French market last
“WHILE COMPETITION WAS AS FIERCE
pean data centre portfolio owned by year, Polet notes.
AS EVER, WE CONTINUED TO BUILD real estate investor Colony Capital. “While competition was as fierce as
OUT OUR ON-THE-GROUND BNP Paribas last year recorded ever, we continued to build out our
CAPABILITIES” double-digit percentage growth in new on-the-ground capabilities in France
GILLES POLET, BNP PARIBAS loans across Europe, with France being and elsewhere in Europe,” Polet says,
in line with this figure, says Gilles Polet, noting the bank has also teams based
the bank’s head of real estate finance in the UK, Italy, Spain and Germany.AWARDS: 2017
Lender of the year in Southern Europe
Deutsche Bank has been an active financing of a Spanish retail portfo- to go, but not as high a risk point as
WINNER:
player in Southern Europe’s real estate lio, plus a circa 65 percent loan to debt funds tend to go.”
Deutsche Bank debt markets for several years. Spain finance Henderson Park’s €52 mil- Loan pricing in Spain, Kogan adds,
was a particular focus during 2017. lion debut in Spain with the acqui- has tightened “considerably” for core
Loans closed during the year sition of Los Cubos – one of assets. “For the right sponsor and
RUNNER UP:
included a €100 million acquisition Madrid’s most recognisable office the right assets, we can be more
Société Générale buildings. The Los Cubos deal, aggressive than local banks and that
which included a capex facility, will is where we find the opportunities.”
“WE TEND TO SEE fund Henderson Park’s reposition- In Italy, Deutsche Bank teamed
OUR BORROWERS ing of the building, which was up with debt fund manager Tyndaris
BEING MORE vacant when purchased in October. for an €80m financing of the five-
CAUTIOUS ON “We tend to see our borrowers star Borgo Egnazia resort in Puglia.
LEVERAGE AND being more cautious on leverage Achieved through a private securiti-
MAXIMISING and maximising senior debt to sation, Deutsche Bank provided €60
SENIOR DEBT TO avoid the need to pay mezzanine million of senior debt and Tyndaris
AVOID THE NEED pricing,” explains Roman Kogan, provided mezzanine debt.
TO PAY head of Deutsche Bank’s European In the loan sales market, the bank
MEZZANINE commercial real estate group. “We bought the Project Inés non-per-
PRICING” have found we can provide optimal forming loan book from Sareb,
Roman Kogan,
solutions for our clients and ourselves Spain’s ‘bad bank’, in October,
Madrid icon: Los Cubos Deutsche Bank
by targeting a leverage point that is through the team’s special situa-
above where local banks are willing tions group.
Syndication team of the year
WINNER: billion senior financing of Black- able to distribute significantly,”
Goldman Sachs stone’s OfficeFirst German plat-
form. “Investors from many dif-
says Bora, adding that the market
for syndicated European real
ferent countries across Europe, estate debt remains strong: “There
North America and Asia, including is a lot of liquidity from a wide
RUNNER UP: banks, insurers and debt funds variety of sources.”
ING Real Estate joined us in that deal,” comments The lack of CMBS paper in the
Finance Andrea Bora, executive director market fuelled investor demand
in Goldman Sachs’ Real Estate for syndicated loans, although
Finance business, who co-heads Bora notes that improved pricing
the team and focuses on its dis- in the CMBS market is likely to
tribution activities. mean 2018’s distribution business
Bora: strong syndication market Across the European markets, is more evenly spread between
“OUR LENDING syndication business dipped syndication and securitisation.
VOLUMES During a year in which it wrote during 2017 as commercial banks “We underwrite to the best
INCREASED more than €3 billion of European countered increasing loan repay- exit and, last year, CMBS was not
BECAUSE WE real estate debt, investment bank ments by holding larger volumes competitive. It couldn’t keep up
WERE ABLE TO Goldman Sachs supported its of loans to bolster their balance with syndication. Now, it is pos-
DISTRIBUTE activities through the distribution sheets. Goldman Sachs, however, sible to price loans for CMBS,”
SIGNIFICANTLY” of around €2 billion of paper continued to operate its origi- Bora says. “CMBS works in a
ANDREA BORA,
through the syndication market. nate-to-distribute model through- number of jurisdictions. That
GOLDMAN SACHS
Among the loans it distributed out the year. “Our lending vol- market is very receptive to the
was its half-portion of the €1.7 umes increased because we were right deal.”
10 REAL ESTATE CAPITAL MARCH 2018BEST
SELLER
private market fundraising
World-class fundraising techniques for private equity, debt,
real estate and infrastructure funds
content highlights:
• Acquire insight into how LPs are viewing the
fundraising environment and how they are
approaching portfolio construction
• Optimise your firm’s preparation with detailed
timelines and plans
• Take full advantage of ‘non-marketing’ situations
for marketing
• Familiarise yourself on how to work with
placement agents for an optimal campaign and
with gatekeepers to get your foot in the door
• Nail that all important face-to-face
presentation…plus much more
available now
Order your copy today:
www.privateequityinternational.com/pmf
London: +44 (0) 20 7566 5444
New York: +1 212 937 0385
Hong Kong: + 852 2153 3844
customerservices@peimedia.com
special offer to subscribers:
Order your copy today quoting SUBBK15 and receive a 15% discountAWARDS: 2017
ANALYSIS
Financing deal of the year – investment
WINNER: Goldman Sachs on a 50/50 basis – a lot of structural complexity in that
Bank of America Merrill Lynch/Goldman plus one of the year’s largest Euro- loan which would have been difficult
pean mezzanine loans. to underwrite in a larger club deal
Sachs/Blackstone Real Estate Debt
Goldman Sachs provided half of on day one,” says Janssen.
Strategies for OfficeFirst the €500 million junior loan through One challenge involved taking into
RUNNER UP: the Real Estate Principal Investment consideration that a key asset from
Area of its merchant bank. The the portfolio – The Squaire office
Citi/Morgan Stanley/Royal Bank of Canada/
property debt fund business of the building at Frankfurt airport – was
Goldman Sachs Real Estate Principal Investment
deal’s sponsor – Blackstone Real to remain within an existing CMBS
Area/Blackstone Real Estate Debt Strategies for Estate Debt Strategies – came in to financing structure. Despite the com-
Sponda take the other half of the mezzanine plexity and speed required, Janssen
piece. says, the lenders priced a deal which
Last March, Blackstone closed the “Who would have thought a was competitive with the commercial
circa €3.3 billion purchase of Office- German deal with the market’s larg- banking market.
First Immobilien – the former IVG’s est borrower would end up being “The terms we could offer were
German office portfolio – in one of done by investment banks?” com- attractive,” he says. “The majority of
the largest European platform trans- ments Jan Janssen from Goldman deals we underwrote last year were
actions of the year. Sachs’ investment bank. priced inside 200 basis points – we
The €2.1 billion financing of the The reason, Janssen suggests, is have the ability to go very tight.”
deal – which was completed during that the speed of execution required, Syndication of the loan is under-
Q2 2017 – comprised a €1.7 billion plus the complex nature of the trans- stood to have brought banks including
senior facility, provided by Bank of action, put the financing into invest- Royal Bank of Canada and Helaba
Potfolio asset: The Squaire America Merrill Lynch and ment banking territory. “There was into the deal.
Financing deal of the year – development
Cain International, which was founded as Cain Hoy The firm teamed up with Qatar Investment – alongside Brookfield Property Partners – of Canary
in 2014, invests in real estate through both equity Authority to provide Canary Wharf Group with Wharf Group as of April 2015.
and debt. In one of its stand-out deals of 2017 – financing for One & Five Bank Street, which is 40 “As an ex-banker of 25 years, you get to know
indeed, one of the largest development financings percent let to the French banking group Société and build relationships with people in the industry,”
in the UK market during the year – it arranged a Générale. comments John Cole, managing principal of Cain
£450 million (€508 million) construction loan for Cain International provided 75 percent of the International, “and the opportunity to look at this
a 27-storey office tower in London’s CanaryWharf. loan, with the remainder put up by QIA, the owner mandate came about purely from a conversation.”
In previous cycles, senior development debt for a
prime London office building would have been almost
WINNER: certainly provided by a bank. “There is a gap where
Cain International, the usual sources of development funding find it chal-
Qatar Investment lenging to lend in that space due to capital constraints.
We have the ability to offer a one-stop solution.”
Authority for One Backing a large London office scheme as Brexit
& Five Bank Street, unfolds makes sense, argues Cole: “Yes, there is spec-
London ulative space, but we support the sponsors’ business
plan and have taken a balanced view on the risk
profile. Real estate is about more than examining
RUNNER UP: spreadsheets; schemes are driven by people and the
Blackstone Real Estate properties themselves and we have faith in the spon-
Debt Strategies for St sors’ ability. London is a global city in which people
Giles Circus, London Towering deal: One & Five Bank Street want to live and work.”
12 REAL ESTATE CAPITAL MARCH 2018You can also read
