July/August 2012 Issue


    Month: July
    Year: 2012

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    Relying on ‘safe havens’ is a dangerous strategy

    As we soldier on through the fourth  year of the post-Lehman Brothers world (doesn’t time fly when you’re having fun?!), it remains de rigueur to focus more on risk than on return. In the midst of a prolonged Eurozone crisis, the focus on risk aversion seems set to continue. Institutions have reacted to this extremely […]

    Indirect investment market: Jones Lang LaSalle market commentary

    UK market overview The Jones Lang LaSalle Balanced Fund Index fell again in June, by 0.52% – its greatest fall since July 2009, writes Ashley Marks.

    Capital into UK property: London’s capital status defies the UK downturn

    According to The Property Archive, Q2 UK investment volumes were £8.92bn –14% up on Q1 2012 and a third more than Q2 2011. Average initial yields rose everywhere except for in London. IPD reported a 2% fall in capital values in the first half of 2012, as UK austerity measures and Europe’s debt crisis stifled […]

    Investor pricing survey: Bearish investors tip rents and capital values to spiral further

    Investors’ bearishness increased in the latest Colliers International/Real Estate Capital Pricing Survey, carried out three times a year by KASPAR Associates’ Dr Karen Sieracki. Prime and secondary yields rose in all sectors except for prime business parks. Predictions of 2012 rent and capital falls intensified, with the latter expected to drop 5.7%, 280bps lower than […]

    Indirex: Data expert finds silver lining in clouds for real estate funds

    Cloud storage and data room provider gives managers easy access to data, writes Alex Catalano

    Blind pools are drying up in harsher fund raising climate

    Investors demand more control as fund raising total dips in first half of 2012, reports Jane Robert

    Only Brookfield comes close as CBRE GI takes global lead

    More than €20bn gap separates two leading managers from following pack, reports Jane Roberts

    Bold few banks aim to strike gold funding the debt buyers

    Underwriting big debt deals is a complex business, but can offer high returns, reports Lauren Parr

    Three innovators add a social flavour to recipe for resi REITs

    Planned resi REITs aim to supply social housing and returns for investors, writes Doug Morrison

    PHP pioneers new financing treatment for property sector

    PHP’s £75m retail bond issue highlights new funding source for property, reports Jane Roberts

    Deutsche Annington closes in on a GRAND CMBS solution

    Noteholders have a lot to digest in refinancing plan for German housing CMBS, writes Lauren Parr

    Comment: No magic bullet, but CREFC has a careful shot at overhauling CMBS

    Understanding the complexities that virtually no one else does, embedded in the structures of CMBS loans, is the stock in trade of members of the Commercial Real Estate Finance Council, who on 24 July put out proposals to improve CMBS loans – the so-called CMBS 2.0. To have expected a trade association to simplify its […]

    Pricoa aims higher in Europe following first loan deal

    New UK lender Pricoa Mortgage Capital could exceed its £325m lending target for Europe this year through direct loans and bank syndications. Drew Abernethy, the US insurer’s head of European origination, said $500m “is a target, not a limit; [ for the right deals] we have a lot of flexibility to go beyond that. “In […]

    Record month for CMBS maturities as extended loans pump total to €2.5bn

    Fitch highlights loan refinancing crisis, with DECO and Perseus deals among those in difficulty

    Henderson’s debt debate highlights rapid rise of non-bank property lenders

    New property debt providers will offer investors a wider range of strategies, while debt products will also change and evolve, said speakers at Henderson’s debt seminar. Alex Catalano reports

    MGPA finds new lenders for Paris asset

    Two new banks are replacing WestImmo and Deutsche Postbank in a €190m, three-bank club, refinancing a Paris office building owned by MGPA. Le Madeleine – bought from Hammerson for €210m in 2009 for MGPA’s Europe Fund III and previously called Trois Quartiers – was refinanced by Helaba, which took part in the original deal, and […]

    Canada Life lands two new clients in £194m loan deals

    GPE venture and Picton Property Income borrow from insurance firm

    People

    Kennedy Wilson adds to UK team                                                                          US asset manager Kennedy Wilson has hired Fiona D’Silva as a managing director from Deutsche Bank, where she worked in real estate syndication. Kennedy Wilson is rapidly expanding its European business in line with acquisitions of distressed loan portfolios and other assets. Hughes in line to head BPF Bill […]

    Smedley follows Owen to Invista

    Tony Smedley has rejoined former Invista REIM colleague Duncan Owen at Schroder Property. Smedley managed Invista’s European Real Estate Trust while Owen was chief executive before the firm was wound down. Reporting to Owen, who became Schoder’s head of property funds in January, Smedley will manage the Matrix European Real Estate Trust, which Schroders was […]

    Coral buys into Round Hill’s Nido

    Coral Student Portfolio, a £110m offshore mutual fund, has made an investment in Round Hill’s acquisition of Nido student housing. Coral has invested equity and made a bridging loan to Round Hill Capital, a private equity firm that syndicates the equity in its acquisitions. The Nido portfolio was sold to Round Hill by Blackstone Group […]

    Henderson seeks £200m for retail fund’s new lease of life

    New capital required as more than 75% of investors vote to extend fund

    Aviva and Secured Capital raise $90m to take Tokyo Recovery fund to $212m

    Aviva Investors has raised another $90m of equity in a second closing for the Tokyo Recovery Fund. The new money takes the fund’s capital to $212m. Aviva, and asset management partner and Japan specialist Secured Capital, hope to raise a total of $250m,which will be geared by 50% to invest $500m in Tokyo offices. Aviva […]

    Grosvenor taps US private placement market again with £90m bond issue

    Grosvenor has raised £90m via the private placement of a sterling-denominated bond in the US. The financing consists of  two tranches: £60m of 10-year notes, which carry a coupon  of 3.38%, 190bps over the benchmark gilt; and £30m of  25-year notes with a coupon of 4.97%, reflecting a 220bps margin over the benchmark gilt. The unsecured […]

    Internos plans opportunistic twist for hotel fund’s sequel

    First fund raises €75m from four investors and buys €100m seed portfolio

    Pbb lines up head for international lending team

    Deutsche Pfandbriefbank (pbb) expects to appoint a director soon to head an international real estate unit it is setting up. The London-based role may be filled internally. The new director will take charge of lending in France, Scandinavia and Spain, reporting to Charles Balch, who took over from Harin Thaker as head of international business in […]

    Mayfair seeks up to £30m for central London resi vehicle

    Mayfair Capital Investment Management is raising equity for a central London residential development fund. James Thornton, a Mayfair director, said: “We have interest from pension funds, family offices and charity endowments. “The minimum investment is £2m-£3m and we’re looking to raise a modest £25m-£30m.” Mayfair has made three London residential development investments via its MC […]

    Threadneedle plans two UK value funds

    Threadneedle Property Investment is talking to investors about launching two follow-on UK value funds. The fund manager wants to raise capital for Strategic Fund V, a value-added fund aimed at capitalising on buying opportunities in the UK, where values are falling in many markets. Strategic Fund IV attracted around £300m of equity in 2009, including […]

    Stadium lands German and UK retail refinancing deals

    Allianz leads €650m CentrO refinancing as RBS provides funding in UK

    CREFC launches blueprint for revival of CMBS market

    Guidelines produced by working group pave way for CMBS 2.0 by finding possible solutions to conflicts between different classes of bondholders

    GE Capital’s UK arm gains Hong Kong mandate

    GE Capital Real Estate UK has been awarded a mandate to look for investments for the Hong Kong Monetary Authority. GE, which is headed in the UK by managing director Ilaria del Beato, has been a direct investor for many years but recently launched a global investment management business. The HKMA is the government authority […]
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