PacLife and Pricoa fund £273m 10-year Plantation Place loan today

Pacific Life and Pricoa Mortgage Capital Group has funded today the circa £273m 10-year senior loan to refinance Brazilian banking mogul Moise Safra’s Plantation Place acquisition last May.

The agreed 10-year Gilt-benchmarked senior loan size, split equally between Pacific Life and Pricoa, is based on CoStar News’ understanding that the final appraised senior loan LTV was 56%.

On which basis, Pacific Life and Pricoa have provided £136.5m each.

This also implies that the final purchase price was £487.5m, which initially included £40m in equity and a rollover of the existing securitised debt and the £25m B-note.

In the 10 months since Safra’s acquisition, Plantation Place has increased in value to £507m, according Knight Frank.

Noteholders in the REC 5 CMBS have been repaid in full, while the £25m Lloyds junior loan is also expected to have been repaid.

The mark to market on the interest rate swap fell from £13.1m in January to £8.7m at today’s interest payment date.

CoStar News was first to reveal that Pacific Life and Pricoa were lined up to refinance Plantation Place back in March.

The senior loan marks the maiden UK senior loan for Pacific Life, which has a $8.32bn US commercial mortgage loan book, and has been looking at potential prime and super-prime London club deals financings for the last six months, after shelving its original plans to enter the market in the summer of 2007 as the global financial crisis took hold.

MetLife was understood to have been involved at an earlier stage of the process, seeking to provide the entire refinancing.

See March’s report for CoStar News’ analysis on the tumultous CMBS, entitled, REC 5: Plantation Place – a truly European CMBS tale

About CoStar News

Finance Editor, CoStar News
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