September 2012 Issue


    Month: September
    Year: 2012

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    Viewpoint: Slots are more difficult for the regions to fit into

    The background to slotting – the replacement  of lenders’ internal risk-based property lending models with the FSA’s standardised risk assessment model – is a familiar one and the latest developments are discussed elsewhere in this issue of Real Estate Capital. But in the past year we have found that analyses of what slotting actually is […]

    Indirect investment market: Jones Lang LaSalle market commentary

    UK market overview The Jones Lang LaSalle Balanced Fund Index continued its downward trend in August, falling -0.53%; the largest fall since the trough of summer 2009, writes Ashley Marks. The index has also fallen into negative territory for the 12-month returns, at -1.12%, or -2.51% when secondary market pricing is taken into consideration. This […]

    Spezialfonds get caught up in Germany’s closing funds net

    Proposal to abolish open-ended funds includes growing institutional vehicles, reports Lauren Parr

    Germany set for wave of REIT consolidation – Alstria boss

    Elamine predicts that champions must emerge in each subsector, reports Doug Morrison

    Deutsche Annington gets set for ascent from Terra Firma

    Analysts see an IPO as eventual conclusion to housing giant’s refinancing, writes Doug Morrison

    Trading soars as investors home in on German housing

    Huge weight of deals are set for refinancing over the next year but quality will ensure stability

    Opportunities in Germany: Opportunistic buyers home in on German distress calls

    Economic stagnation elsewhere makes Germany best bet for bargains, reports Lauren Parr

    Standard Life looks west with first new fund in five years

    Canada’s economic stability and booming oil sector are drawing attention, writes Jane Roberts

    Investors can look forward to a global fund index at last

    INREV teams up with ANREV and NCREIF to measure 670 unlisted funds, reports Jane Roberts Investors will soon be able to compare the global and intra-regional performance of real estate funds for the first time. Three industry bodies, INREV, ANREV and NCREIF, have teamed up to create a Global Fund Index to measure 670 unlisted […]

    DebtX bids to reveal flaws in property loan auctions

    Auction process may deny bondholders best prices, report says

    FSA remains set on squeezing lenders into a very tight slot

    Banks given breathing space but must still adopt FSA’s property risk model, writes Alex Catalano

    Time to slot shared database into property risk weighting system

    Real estate is a tricky asset class. For two years now the Financial Services Authority – which has been regulating banks and other lenders – has been trying to push UK banks to ensure that they are holding enough capital in reserve to withstand downturn-level losses on their real estate loans. The regulators justifiably doubt the banks’ […]

    DTZ’s Hong Kong team departs

    DTZ’s attempt to launch an investment management business in Asia ended last month when its four Hong Kong-based staff left. David Schaefer, formerly at Citi Property Investors in Asia, was a high-profile hire in March 2010. However, fundraising for a debut fund came to nothing and he and his team have left. Sources said their […]

    AXA REIM goes big in Japan

    AXA REIM has raised capital for a fund to buy mid-sized offices in Tokyo to be asset managed by Sumitomo Mitsui Trust REIM. The Tokyo Office Property Fund will co-invest with Mitsui’s own Tokyo Office Real Estate Fund and together they have €100m after first closings. TOP will be leveraged up to 50%, targeting an […]

    MGPA pulls in €85m for Asia fund

    MGPA raised €85m at the first close this month of its core-plus Asia fund for German investors. Three German institutions made commitments to MGPA Asien Spezialfonds, which will focus on developed markets such as Japan, Australia, Hong Kong, Singapore and Malaysia. MGPA is using the KAG platform of Universal-Investment to provide the regulated fund structure […]

    Aviva opens umbrella for funds seeking secure returns

    Pension schemes will be able to invest in all five underlying REaLM fund

    People

    Oxford loses UK MD Simon Marriott has left Oxford Properties, where he was UK managing director. Marriott joined the real estate arm of Canadian pension fund OMERS from MGPA two and a half years ago to drive acquisitions in Europe. Kinney joins Carlyle Group The Carlyle Group has hired Douglas Kinney from real estate placement […]

    Two investors add €120m to TVHG’s hotels campaign

    Dutch property company TVHG has secured a capital injection that will allow it to carry out €120m of mainly budget hotel developments. Metric Capital Partners,  which was set up last year as a UK-based capital provider to mid-cap European companies, and Hutton Collins Partners invested via a credit instrument with equity participation. TVHG will use […]

    EPRA attendees told REITs are not the solution to Europe’s debt problems

    Sam Zell, the American tycoon and founding father of the public real estate industry, this month quashed hopes of a US-style REIT renaissance in Europe. Zell told senior directors of leading European REITs that they had little chance of replicating the US experience of the early 1990s, when the mass “equitisation” of real estate laid […]

    Workspace follows retail bond trend

    Up to £75m sought with seven-year issue priced at 6%, above two recent property company offers

    Cairn works with Eurohypo to rewrite Irish Opera CMBS

    Eurohypo has hired Cairn Capital to advise on options for Ireland’s first CMBS deal, which is four months from loan maturity. The €375m Opera Finance (CMH) CMBS is backed by 16 office and retail assets, mainly  in Dublin, valued at €500m in December 2005. The largest property is the 145,000 sq ft Stillorgan shopping centre. […]

    REIT trio taps markets for cheap finance

    Three of the UK’s biggest REITs are raising over £1.1bn of cheap money on the bond markets. Last week Capital Shopping Centres announced a £300m, six-year convertible bond issue, which may be extended by £50m, while Hammerson closed a seven-year senior, unsecured corporate bond, raising €500m. British Land closed a £400m five-year convertible issue earlier […]

    Redefine looks to slash debt with cut-price equity issue

    Company seeks £122.5m to help pay down maturing Delta CMBS loan

    Perella’s follow-on fund wins €600m

    Perella Weinberg has raised €600m for its second pan-European opportunity fund. The US-based manager held a first closing in summer and is to raise further capital to expand Perella Weinberg Real Estate Fund II by early 2013. The first fund raised €1.2bn  in 2007-2008 and is now fully invested. It recently returned capital to investors […]

    Opera’s sequel is hit with investors

    All Opera (Uni-Invest) class A CMBS noteholders who were eligible have taken up notes in  a new deal, Utrecht Funding, backed by the same properties. A few investors did not take up the notes because they were not entitled to do so, according to a financial adviser on the deal. Utrecht Funding, established by TPG […]

    Patron’s fourth Europe fund beats target to land €880m but advisor says others are struggling

    Middle East and European capital makes up for smaller US contribution

    Patel to focus on resi debt as Cordea CIO

    Kiran Patel will help Cordea Savills to expand its residential and debt businesses as part of his new role as chief investment officer. The appointment of Patel, who resigned from AXA Real Estate last November, enables Justin O’Connor, who previously filled both roles, to focus on his duties as chief executive. Patel said: “Residential is […]

    Institutions back Aberdeen’s €1bn German housing fund

    Company raises €115m to kick off second spezialfond, targeting city flats Aberdeen Asset Management has launched a potential €1bn core fund for the increasing number of investors interested in German housing. Aberdeen started Städte und Wohnen with €115m of capital from four investors and has contracted to buy six assets. Senior Aberdeen analyst Stephan Schanz […]

    McLaren on course to fund two student housing projects

    McLaren Property, now headed by former Capital & Regional director John Gatley, has secured forward funding for two student housing developments. Apache Capital and Tadhamon Capital will fund Paris Gardens, a 253-bed development in Southwark, SEI. The pair have signed a £45m funding agreement on behalf of their jointly-managed, Shariah-compliant Social Infrastructure investment arm. Apache […]

    In brief

    Spezialfonds may win reprieve Unexpected proposals by the German Federal Finance Ministry to abolish all open-ended real estate funds may be watered down. The 20 July draft Capital Investment Code threatened to outlaw Spezialfonds as well as German open-ended funds open to retail investors. However, after lobbying, the German Property Federation says it is optimistic […]

    Lloyds’ UK Project Forth joins list of slated debt sales

    Lloyds is marketing Project Forth, its third UK loan portfolio, and has received first-round bids for the €2bn Project Pittlane Irish loan portfolio. Project Forth is a nominally-£700m valued non-performing loan book being marketed by Morgan Stanley, secured against around 100 properties mainly in northern England and Scotland. Lloyds is seeking initial bids by the […]

    Situs to build servicing role after buying DB’s business

    US firm aims to buy more servicing operations from retreating banks

    External managers lack skills to get best returns for pension funds, report finds

    External managers increase costs and underperform for pension funds that use them to invest in real estate, Mastricht University research has found. The study of 884 European, US, Canadian, Australian and New Zealand pension funds from 1990 to 2009 found that, even controlling for fund size and costs, switching from internal to completely external management […]

    Deutsche Bank goes live with FLORE German resi CMBS

    Keen interest in German housing helps get €754m issue off the ground The second new CMBS to be issued this year has been priced and the bonds are due to be sold this week. The €754m FLORE 2012-1 German multi-family housing agency deal is likely to attract German institutional bond buyers. Deutsche Bank is sole […]

    IPD highlights ‘retrograde’ nature of FSA slotting plan

    Study based on £56bn of assets monitored by IPD finds FSA’s system of property risk weighting for lenders is “potential threat to financial stability”
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