Over €1bn of new development loans and refinancings were signed this week with the largest debt facility being secured by a joint venture of Kennedy Wilson and AXA IM Alts.
Lenders Wells Fargo and Deutsche Bank emerged as the winner of a competitive process run by Eastdil for the refinancing of a portfolio of five stabilized apartment assets in Dublin and Cork, Ireland. The $510m five-year refinancing process generated “extremely strong market interest”, according to Mike Pegler, president of Kennedy Wilson Europe.
“We secured competitive terms from a diverse pool of over 30 potential lenders, including both local and international banks, insurers and debt funds. This is a testament to the quality of this portfolio as well as the underlying strength of the apartment market in Ireland, where we have invested since 2012,” Pegler said.
The assets, including Clancy Quay, Sandford Lodge (pictured), the Alliance and Grange East in Dublin, as well as the Elysian in Cork, comprise a total of 1,689 units and are all fully leased with current occupancy at 99.5%.
The facility was one of a string of refinancings and development loans issued this week across Europe.
In Berlin, developer Primus Immobilien secured €250m in project financing for a total of four developments from lenders HVB/UniCredit, Berliner Sparkasse, DZ HYP, and a major German insurance company. In Poland, developer AFI won a €120 mln refinancing facility for four PRS assets in Warsaw, Kraków, and Wrocław from Santander Bank Polska and Helaba. The loan - the largest transaction of its type in this sector in Poland - is secured against AFI Home Metro Szwedzka and AFI Home Metro Zachód in Warsaw as well as AFI Home Czyżewskiego in Kraków and AFI Home Długa in Wrocław.
In the completed deal section, a €300m Spanish mixed portfolio changed hands while a few office properties were put up for sale. They include Barcelona’s Torre Diagonal Mar, which is being marketed by its landlord Union Investment for a price over €100m.
| Recently completed deals | |||||||
|---|---|---|---|---|---|---|---|
| Asset | Asset type | Location | Buyer | Vendor | Size | Price (mln) | Key facts |
| Diversified portfolio of four properties | mixed | Madrid, Barcelona | IBA Capital Partners and Batipart Europe | AXA IM Alts | 101,000m² | €300 | The flagship asset in the portfolio is a landmark 60,000m² office complex located at Ramírez de Prado 5 in Madrid |
| The Slate Yard | living | Manchester | KKR and Inhabeo | L&G | 270,000 sqft | £100 (€120) | The portfolio consists of 424 high-quality residential units across three properties |
| Festival Place | retail | Basingstoke, UK | MDSR Investments | receivers BDO | 1,100,000 sqft | £99.1 (€115) | The asset was put into receivership in May 2023 |
| Nosso Shopping Douro | retail | Vila Real, Portugal | L Catterton | Trajano Iberia | 31,789m² | €79 | The Spanish REIT selling the asset is a vehicle of DWS |
| 6 properties | living | Barcelona and Madrid | Sagax | NA | 75,900m² | €75 (SEK830) | The portfolio generates SEK 43m of annual rents and have an occupancy rate of 96% |
| Two development assets | logistics | Belgium | WDP | Kris De Leeneer | 43,000m² | €60 | The deal is for the development of a new sustainable warehouse and the sale-and-lease-back of KDL’s existing automated high bay facility |
| Town Quay development | living | London | Royal London AM | Weston Homes | 85 units | £36 (€43) | The forward fund agreement encompasses two buildings at the mixed-use Town Quay development |
| Central Quay | office | Dublin | Atland Voisin | Hibernia | 59,000 sqft | €42 | The property is fully occupied |
| Portfolio of 3 assets | retail | Kiruna, Sundsvall & Gävle, Sweden | Prisma | NP3 | 26,700m² | €41 (SEK463) | The assets are 96% leased |
| Drammensveien 130 (Bygg 9) | logistics | Oslo | Thune Eiendom | Sparebank 1 Forsikring | 16,754m² | €41 (NOK500) | The deal also includes a 15% stake in a parking facility. |
| four local retail properties | retail | Germany | Slate AM | Modulus Real Estate | 23,000m² | €40 | The portfolio includes Hademareplatz 1-5 in Hemer; Kaufpark 1-11 in Neustadt; Hafenstraße 10–30 in Heide; and Brockeswalder Chaussee 33 in Cuxhaven |
| via Cristoforo Colombo 142 | office | Rome | NA | Atlantic 1 fund | 38,000m² | €26 | The company first tried to sell the asset for €41m just before the Covid pandemic |
| 27-property portfolio | logistics | Stockholm and Gothenburg | Lagerhome | Regio | 94,400m² | NA | The portfolio is currently 90% occupied, with a diversified lease profile across more than 120 tenants |
| 11 hotels | hotel | UK | Travelodge | NA | 1,070 rooms | NA | The hotels are located in Birmingham, Bradford, Dartford, Leicester, Liverpool, Manchester, Northampton, Milton Keynes and Swindon |
| Stará Celnice office and retail building | mixed | Prague | Fio Investment Company | BVK | 11,500m² | NA | This is the third acquisition for the fund, which was launched in December 2021 |
| D, E and F stages of its Bohema project | living | Warsaw | AFI Poland | OKAM Capital | NA | NA | The sale comprises 5 buildings with a total of 371 apartments, 39 retail/service units and 10,000m² of office space |
| prime development site in Aulnay-Sous-Bois | development site | Paris | Valor and QuadReal | NA | 5,000m² | NA | The plan is to deliver a 5,000m² urban logistics scheme with completion expected for Q1 2026 |
| Orionintie 18-22 | logistics | Espoo, Finland | Tristan Capital Partners and Catella Asset Management | Heino Group Oy | 21,000m² | NA | The property is fully leased to Valio Aimo. |
| Wolters Kluwer office | office | Alphen aan den Rijn, The Netherlands | Multi Corporation and M.O.S | NA | 13,000m² | NA | The property is fully let and has the potential to be converted to 250 apartments |
| Two purpose-built student accommodation assets | living | Edinburgh and Glasgow | Ottoway Portfolio Holdings | Mapletree Global Student Accommodation Private Trust | 750 beds | NA | The properties are Beaverbank Place in Edinburgh and Firhill Court in Glasgow |
| Blechen Carré | retail | Cottbus, Germany | Dutch family offices | Amundi’s CBC Projekt | 20,650m² | NA | Built in 2008, the asset is 76% occupied |
| 135 Bydgoska Street | retail | Piła, Poland | Newgate Investment | NA | 15,943m² | NA | The retail park accommodates several major retailers, including Castorama |
| Assets on the market | |||||||
|---|---|---|---|---|---|---|---|
| Asset | Asset type | Location | Vendor | Size | Price (mln) | Broker | Key facts |
| Lovell Park | mixed | Leeds | Lloyds Banking Group | 271,466 sq ft | £300 (€350) | JLL and CBRE | The scheme is to be converted to PBSA units and BTR homes |
| Barcelona Hoxton hotel | hotel | Barcelona | NA | 240 rooms | €135 | NA | The hotel opened its doors in 2022 |
| Torre Diagonal Mar | office | Barcelona | UniImmo: Europa fund | 22,515m² | €100 | NA | Torre Diagonal Mar was acquired in 2004 |
| 70 Petty France | office | London | Mitsubishi Estate London | 92,000 sqft | £70 (€82) | Avison Young | The sale reflects a net initial yield of 7% |
| Nu Office II | office | Munich | HIH Invest Real Estate | 13,000m² | €50+ | BNP Paribas Real Estate | The asset is occupied by NTT Data. |
| Old Essex Barn | living | Essex, UK | NA | 2.7 acres | NA | Knight Frank | The property with 16 en-suite guest bedrooms is offered with vacant possession |
| Recently completed loans | ||||
|---|---|---|---|---|
| Lender(s) | Borrower(s) | Asset(s) | Loan Size (mln) | Key facts |
| Bank of China, Barclays, BNP Paribas, Lloyds, NatWest, Santander, SMBC and Wells Fargo | Segro | Unsecured | €1600 | The senior unsecured facility has an initial five-year term and may be further extended to a maximum of seven years |
| Wells Fargo and Deutsche Bank | Kennedy Wilson and AXA IM | five stabilized apartment assets in Dublin and Cork | $510 (€450) | The five-year facility refinances an existing loan granted in 2018 |
| HVB/UniCredit, Berliner Sparkasse, DZ Hyp and a German insurer | Primus | four Berlin projects | €250 | The projects are expected to be delivered in 2027 and 2028 |
| NA | Cibus | Cibus portfolio | €232 | The new loans have a 3-year tenor and parts of the loans also include extension options for a further two years |
| Santander and Helaba | AFI | Four PRS developments in Warsaw, Kraków, and Wrocław | €120 | This is the largest transaction of its type in this sector in Poland |
| HSBC UK and Homes England’s Home Building Fund | Wyatt Homes | Resi portfolio | £75 (87) | The loan will allow the firm to build more than 300 homes a year at developments across Dorset, Hampshire, Somerset and Wiltshire |
| Lloyds Bank | Seaton Place | Gaspé House and JTC House | £65 (€76) | The refinancing facility was arranged by Colliers |
| BLME | Urbium Capital | Two PBSA projects in York and Nottingham | £45 (€52) | The loan will finance a York scheme set to open next year and a Nottingham scheme completed last September and fully let |
| Leumi UK | Martley Capital Group | 20 underlying assets across all sub-sectors | £43 (€50) | The portfolio has assets across office, retail warehouse, retail, industrial and open shopping centre with supermarket anchor |
| BayernLB | Catella | BTR asset in Mönchengladbach, Germany | €47 | The green loan finances construction of the asset |
| Shawbrook | Aria Finance | Edinburgh commercial project | £31 (€36) | The loan includes a £28.6m bringing facility alongside a top up VAT bridge |
| Broadwood Capital | Athena Healthcare Group | two care homes in Lancashire | £20 (€23) | The development loan will support the construction of two care homes |
| Beaufort | LNT Care Developments | Care home portfolio in England | NA | The facility will initially fund the construction of 264 new care beds across England |
| Funds on the market | |||
|---|---|---|---|
| Firm | Fund | Strategy | Details |
| HanseMerkur | Debt fund | Providing bridge financing for commercial and residential schemes in Germany | The fund is looking to reach a volume of €500m |
