May 2011 Issue


    Month: May
    Year: 2011

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    In brief

    Cairn advises on Bern disposal Cairn Capital has advised German investor Karl Bartel  and the lender on the sale of the Wankdorf-Center in Bern, Switzerland, after a default under the loan-to-value covenant on debt secured on the retail and office asset. UBS Global Asset Management bought the six-year-old scheme for its Sima fund, Swissreal, and the […]

    SocGen syndication head quits to form own CMBS fund

    Société Générale’s head of European syndication has left to start a fund focused on buying secondary CMBS and investing in structured real estate debt. Hugo Headicar, director of real estate debt, syndication and sales, spent much of last year working on the White Tower deal. SocGen led a club of five lenders that provided £402.6m […]

    Eurohypo backs SW1 refinancing

    Eurohypo has led a £320m refinancing of Saudi Arabian investor The Olayan Group’s  Knightsbridge Estate in SW1. Last June Olayan teamed up with Chelsfield Partners to pay Quinlan Private £600m in cash for the central London site. Olayan beat Korea’s National Pension Service (represented  by Rockspring) and the Qatari Investment Authority to the deal, amid rampant […]

    Reforms needed to boot up CMBS programmes

    The formation of the Commercial Real Estate Finance Council’s CMBS 2.0 Committee reflects the industry’s wish to modernise in preparation for a return of CMBS new issuance in Europe. As a first step, January’s implementation of the Capital Requirements Directive (CRD) article 122a provided much-needed regulatory clarity to the securitisation market. The CRD goes some way […]

    UK property equities

    Real Estate Capital UK commentary Central London continues to outperform the rest of the UK, with CBRE’s April index showing offices produced 0.4% capital growth and 0.5% rental growth, against 0.1% and no increase respectively for all property. Investors are focusing on big UK REITs with heavy London exposure. Great Portland, British Land, Derwent London […]

    Indirect investment market: Jones Lang LaSalle market commentary

    UK market overview The Jones Lang LaSalle Balanced Fund Index rose 0.34% in April, compared with 0.30% in March, writes Julian Schiller. The index has risen 1.32% since the start of the year and 4.18% in the past 12 months. Taking into account secondary market pricing, the 12-month return falls to 1.18%, suggesting that the […]

    Derivatives: Contract pricing edges up as capital value growth slows

    Pricing for 2011 contracts rose 30bps in April, while IPD Q1 2011 figures showed capital values still growing, albeit more slow

    Liquid investments are set to form Pacific’s next big wave

    Sir John Beckwith’s company is raising three funds, the latest being an indirect vehicle whose liquidity should appeal to defined contribution pension fund investors, reports Jane Roberts

    InProp derivative fund slakes thirst for liquid property play

    New investors look set to double size of recently launched IPD-tracking fund, reports Jane Roberts

    Alternative futures beckon for trading in synthetic property

    Futures beat swaps for some derivatives users, writes RBS senior derivatives trader Philip Ljubic

    Derivatives: More investors find synthetic market can offer the real deal

    Non-bank users dominated derivatives trades to a record extent in Q1 2011, writes Jane Roberts

    CBREi and LGP vehicles have defined targets in their sights

    Two recently unveiled funds are the first to tap a growing pensions sub-market, writes Jane Roberts FSA-approval, daily pricing, unit accumulation, high liquidity, low volatility: these are all desirable, if not essential for investors and managers of defined contribution pension schemes when they invest contributions. Such contributions are predicted to grow like topsy. Pensions consultant […]

    Banks lose appetite for all but most prime property morsels

    London Business School event says it will take 10 years to clean balance sheets, writes Lauren Parr

    Derwent’s REIT choice for financing

    Last week’s £175m convertible bond issue by REIT Derwent London shows that the best managements with the right assets still have a choice of finance raising options. Derwent’s issue was notable because UK property companies rarely use convertible bonds, but also for the low cost of the finance. With a 2.75% coupon, the five-year-dated, unsecured […]

    Industry group hopes banks can be sold on property derivatives

    More investors and fund managers are looking to use property derivatives to improve investment returns and are starting to compare its pricing regularly with their other options. The argument that derivatives can give fund managers a competitive advantage is gaining acceptance. Asset allocator converts, like UBS’s David Buckle, would even say the whole industry’s image […]

    Four left in the running as RBS whittles down shortlist for £1.6bn UK loanbook

    Royal Bank of Scotland has narrowed down the list of bidders for its £1.6bn UK property loanbook to Lone Star, Blackstone, Westbrook Partners and Starwood. Perella Weinberg and Morgan Stanley are believed to be among the up to 12 parties that expressed interest in the loans. Lazard is handling the sale for RBS, which now […]

    Centre Point deal helps take Eurohypo lending to €400m

    Financing for big office deal and L&G swell new lending so far this year

    Peakside sells out of Berlin complex

    Roger Barris’ company Peakside Capital has sold its majority stake in a Berlin residential complex, worth €24.5m. TAG Immobilien bought  the holding, which was held indirectly by the €261m Peakside Real Estate Fund I. The fund inherited the asset after a management buyout of Bank of America Merrill Lynch’s European private equity real estate business […]

    Nationwide puts up £33m for M7’s and Europa’s LIPP

    Nationwide’s commercial team has provided £33.2m of debt for Europa Capital’s and M7’s Real Estate Light Industrial Property Partnership joint venture. The five-year facility, at a 59% loan-to-value ratio, is secured against LIPP’s 10 UK industrial estates and will refinance £21.5m of debt with Westdeutsche ImmobilienBank, with £12m left for acquisitions. LIPP is already under […]

    Corpus Sireo adds new resi business

    German asset manager Corpus Sireo is to transfer 16,000 homes it already manages to a new Asset Management Residential business. Stefan Korthals, previously head of portfolio management for the group’s residential real estate portfolio, will lead the business, with offices in Cologne, Berlin and Leipzig. It will provide portfolio and asset management services; and  sales and […]

    Grainger handles homes for bank

    Grainger has won a mandate to run a new distressed residential property platform for Lloyds – the first agreement of its type in the UK. The deal was secured by Grainger’s asset and property management team, led by Alex Greaves and Anish Thobhani, who will head the Grainger Residential Asset Management Platform. Grainger is thought […]

    Lloyds pension fund backs SWIP vehicle

    A Lloyds Banking Group pension fund is one of the three cornerstone investors in the Pan-European Urban Retail Fund (PURetail), launched last month by Lloyds subsidiary Scottish Widows Investment Partnerships with €100m. Robert Matthews, head of international property at SWIP, said the other two investors in the retail vehicle are a multi manager and a […]

    Europe faces world’s largest gap in property debt funding

    Europe faces the biggest property debt funding gap globally, at $118bn over the next three years, according to DTZ. It also lacks the most available equity, proportionate to the shortfall.  The UK is up against the biggest challenge, with a gap of $42bn; followed by Spain at $28bn; and Ireland at $12bn. On the other hand, banks […]

    Benson Elliot wins Barcelona project in Spanish bank deal

    Bank provides finance to help buyer take office development off its hands Benson Elliot has forward purchased a prime Barcelona office investment with stapled finance from Banco Sabadell. Antic Cami de Valencia is a 20,000m2, three-building complex with a projected €80m end value and will be developed by Banco Sabadell’s real estate arm, Solvia. Benson Elliot […]

    Topland targets resi mezzanine debt via Dragonfly and Westcity joint venture

    Topland has refined its strategy for investing in mezzanine debt by teaming up with Dragonfly Property Finance and house builder Westcity to lend on prime central London housing. The move follows Topland’s plan last year to invest up to £200m in a mezzanine fund and reflects the fact that the greatest appetite for mezzanine debt […]

    People

    Valente takes JP Morgan role Joe Valente has left Allianz  Real Estate to join JP Morgan Asset Management as head of research and strategy for the European real estate team. He will report to Peter Reilly, head of European real estate. Valente moved from his post as global head of research at DTZ to join […]

    HSBC to co-head Stratford City deal

    HSBC is the third lead  underwriting bank for Westfield at the Australian company’s Stratford City regional mall in east London, alongside Credit Agricole CIB and Eurohypo. It is thought that HSBC and one of the other two banks already have the go-ahead to underwrite up to £175m each for Westfield. The banks are expected to […]

    MSREF fund gives up German offices

    MSREF VI is finally handing back the keys on a German office portfolio worth around €900m. The Morgan Stanley fund has agreed to sell its equity stake to a special-purpose vehicle set up to buy the properties, which form the security of the €940m Mozart loan, the largest part of the Talisman-7 CMBS. The deal […]

    CWI follows Henderson by pulling plug on segregated multi-manager business

    Cushman & Wakefield Investors has withdrawn from advising segregated indirect property mandates. CWI is the second fund manager to close down its segregated multi-manager recent decision to quit this market. Both had relatively small businesses: CWI had five mandates, with total assets under management of around £90m; Henderson had nine, totalling £195.5m. A mandate to […]

    White Tower note holders in the money after City disposal

    Most investors in CMBS will be repaid from Aviva Tower sale proceeds

    Leadenhall sale pays off CMBS investors

    Investors in the debt backing five City offices will get their money back following the £190m sale of Leadenhall Triangle, EC3. The buildings went into administration with Pricewater-houseCoopers in November 2010 after the two borrowers failed to repay £173m of debt secured against them last April. They were two private investor groups, one from the […]

    M&G’s property debt vehicle set to close with over €175m

    M&G rakes in further €35m as 13 mezzanine funds get set to raise capital

    German bank funds Catalyst’s distressed Paris CMBS buy

    Deutsche Pfandbriefbank has part financed one of France’s first distressed bank sales. It lent almost €88m for Catalyst Capital to buy Front de Parc in northern Paris out of the recently unwound Barclays Juno Eclipse 2007-2 securitisation. The loan includes a refinancing tranche, two capital expenditure tranches and a VAT line. Catalyst also injected equity to […]

    In brief

    LGP funds pull in £575m Legal & General Property took in £575m of net new capital in Q1 2011 – more than a quarter of Legal & General Investment Management’s £2bn net inflows. UK head of balanced funds Mike Barrie said the UK Property Unit Trust had grown from £470m at the start of the […]

    De Montfort reports first fall for UK property debt

    The amount of commercial real estate debt in the UK financial system shrunk by 9.4% in 2010,  De Montfort University’s annual survey has found – the first drop in the survey’s 14-year history. The 66 lending teams reported balance-sheet debt secured by UK commercial property fell 9.4% in 2010, to £206.9bn. This may indicate that […]

    UREX gets ready for sector trading

    Derivatives exchange EUREX, which launched futures based on the IPD UK All-Property index two years ago, is planning to add sector trading shortly. Contracts on the UK retail, office and industrial sectors will be introduced first. EUREX director Stuart Heath said: “We have the ability to go into sectors and initiated that process at the […]

    Synthetic property group bids to raise banks’ role in market

    PDIG chairman says greater derivatives use may aid banks and market

    Santander changes regional focus in real estate shake-up

    Five regional real estate teams formed to work alongside large loans unit

    DB’s Chiswick Park CMBS hits the road

    Deutsche Bank’s securitisation of Chiswick Park has been officially launched this week. A one-week roadshow will begin on 23 May, with the bank lined up to talk to investors like L&G, M&G, AXA, Aviva and Henderson. The £302.2m floating-rate CMBS, named DECO 2011-E5 and rated by Standard & Poor’s and Canadian rating agent DBRS, features […]

    Lloyds plans to slash £14bn UK social housing loanbook

    Bank seeks to cut exposure to low-margin social housing debt and is l ikely to take a hit on any disposals, despite renewed interest in sector
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