Understanding structured finance provides a barrier to entry. It helps us optimise transactions and deliver positive results for buyers, sellers and lenders
Co-investing with several long-standing private clients, we bought Drapers Gardens
in June 2010, at a time of significant market uncertainty. With liquidity being so scarce between 2008 and 2010, the guide price of £242.5m represented a particularly big lot size. The deal also needed to be executed rapidly. We successfully agreed a senior debt package with Eurohypo (now owned by Wells Fargo). Then, to improve the loan-to-value ratio and de-risk the transaction, we arranged a mezzanine funding deal - one of the first large mezzanine funding deals of the cycle, and the debut bridging loan provided by Pramerica Real Estate. Thanks to our rapid execution of this complex structured financing, the deal took just 10 days to complete [CHECK?]
, within a timeframe that was unconditionally required by the vendor.
At our Königsbau Passagenn
office and retail complex in Stuttgart, our strategy of holding for the long-term, combined with a creative and holistic asset management style, led to a vastly increased rent roll and ultimately to a successful long-term refinancing deal, worth €182.5m in 2014. This refinancing replaced an existing maturing facility from HSH Nordbank, which was put in place when Evans Randall bought the centre for €220m in 2006. The seven-year loan included a senior facility from Allianz for €145m at a fixed rate of 3.5% per annum and with no amortisation for the first two years. European Real Estate Debt II S.à.r.l provided a mezzanine facility of €37.5m. The seven-year term allowed us to take advantage of historically low interest rates, and pursue further long-term value-enhancing asset management initiatives with the asset.
Evans Randall Investors bought Milton Gate
in June 2009 for £127m, during the low point in London’s office investment cycle, when the ability to transact was paramount, despite historic lows in liquidity. As such, Evans Randall’s transactional skills enabled it to capitalise on market conditions while other participants were unable or unwilling to invest. Senior debt for the purchase was arranged with Santander and DG HYP in a club deal. Further financing was arranged with Al Salam Bank Bahrain, by way of a Sharia compliant commodity murabaha arrangement. It was the bank’s debut deal, brought to the table using Evans Randall’s wide financial network. Find out more about the project here.