Offices

A loan from six banks funded the €880m purchase of offices for a retrofit project without a lease.

The landlord has sourced £533m of fresh financing but faces a wall of office-related debt maturities in the coming years.

The CMBS special servicer will leave the valuation in draft form until the future of the asset’s key tenant is clearer.

The financing replaces construction debt put into place in 2019.

Christof Winkelmann, chief market officer at the German bank, said the lender successfully dealt with troubled hotels during covid-19 and will do the same with its US office exposure.

The borrower acquired 50 Fenchurch Street in 2022 and plans to develop a circa £1bn office tower.

The bank has provided a £46m loan to South Korean managers Kiwoom Securities and Hana Securities.

Sitting at one of the City of London's busiest junctions, the multi-use building's lender put its loan up for sale in January.

The German bank has provided a €130m facility to Schroders for an office portfolio.

Morningstar DBRS has flagged German and Nordic banks with large commercial real estate books as vulnerable to increased loan loss provisions.