Ivanhoe Cambridge and Grupo Lar refi Islazul as banks look to Spain for relative value

Ivanhoe Cambridge and Grupo Lar have refinanced their joint venture Spanish shopping centre, Islazul, with a €97.5m five-year senior loan from West Immo, Natixis and BAWAG, as the country’s beleaguered banking market shows signs of nascent stabilisation.

Ivanhoe Cambridge logoWest Immo and Natixis, existing lenders on the matured facility, provided €33.45m and €32m respectively, while BAWAG provided €32m replacing M&G Investments form the original ticket.

CoStar News understands that the €97.45m reflects a 50% LTV based on the recent €195m valuation by Colliers International, and the loan was priced at 425 basis points over Euribor.

Islazul, which opened in April 2008 and was jointly developed by Ivanhoe Cambridge and Grupo Lar is the largest shopping centre in the Spanish capital with 180 stores over 969,000 sq ft, including Cortefiel, C&A, H&M, Mango, Mothercare, Prenatal, Primark, Pull & Bear, Springfield, Sfera, Tintoretto, Zara as well as furniture and home décor stores, Menaje del Hogar and Zara Home.

Tightening senior margins in the UK and the more stabilised Western European markets increased the relative attractiveness of financing commercial real estate in markets where the stabilisation of the economy, property fundamentals and lending markets are still at an early stage of normalisation, such as in Spain and Italy.

Goldman Sachs has closed a €173.4m five-year senior loan to refinance Orion Capital Managers’ Puerto Venecia Shopping Centre and Retail Park in Zaragoza.

British Land sold its 50% stake in Puerto Venecia to Orion European Real Estate III, which already owned the other 50% of the shopping centre, for €144.5m, valuing the entire asset at €289m.

Goldman Sachs’ senior loan reflects 60% LTV and was priced at above 400 basis points, with the investment bank thought to be deliberating over a syndication of capital markets exit for the loan.

Last month, Goldman Sachs priced its €363mn Italian retail CMBS transaction, Gallerie 2013 Srl, crystallising a considerable profit which could tempt the bank to consider a Spanish securitisation in the New Year.

Puerto Venecia comprises a 890,000 sq ft retail park, which opened in 2008, and a 1.4m sq ft fashion and leisure phase, which opened in October 2012.

All parties decline to comment.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
Gallery | This entry was posted in Banks, CMBS, Lenders, Market Trends, Private equity real estate, Refinancings and tagged , , , , , , , . Bookmark the permalink.

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