Munchener Hyp closes two financing deals in London

German mortgage bank Münchener Hypothekenbank has closed two financing deals in London totalling £54.2 mln (EUR 69.3 mln). The first involves a £29.2 mln participation in a senior facility provided by Lloyds Banking Group to finance a portfolio of three office assets in Central London for Lazari Investments Ltd and the second is a £25 mln participation in a City of London office financing.

Over the past 12 months MünchenerHyp has increased its activities in the UK and France, bucking the trend of other German banks and providing a total of £244 mln in 11 UK transactions since January 2011, following a period of low activity in 2009 and 2010. It counts amongst its clients some of the major German funds including Deka Immobilien and IVG, and HPUT and Two Rivers LP in the UK.

Laxfield Capital acted as arranger for both transactions.

In May this year, MünchenerHyp issued a £1 bn, 10-year jumbo mortgage pfandbriefe at just 10 basis points over mid swaps. On the back of its funding capacity, the bank aims to increase its exposure to UK commercial lending.

In a statement, MünchenerHyp board member Bernhard Heinlein said: 'The UK continues to be a core market for our commercial lending business. As ever we follow a conservative policy, but with our strong refinancing position, this is the right time to increase market share with good clients.'

Münchener Hypothekenbank is the only German mortgage bank doing business in the legal form of a co-operative. With about 80,000 members it is one of the biggest co-operative banks in Germany. The bank’s two core areas of business are private and commercial property finance.

Laxfield Capital is a debt origination, execution and loan management business which works with lenders seeking wider access to UK property lending market.