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TIAA Henderson Real Estate completes c.£200m commercial real estate debt transactions

TIAA Henderson Real Estate (TH Real Estate) has recently completed a series of loans through its newly established commercial real estate debt platform. TH Real Estate offers senior, junior and whole loans secured on a wide range of property assets in London and in the UK regions, with terms from 4 to 20 years and with leverage up to 75% loan-to-value.

In a clear signal that the new venture is actively ramping up its origination platform, TH Real Estate closed two loan facilities in December. The first transaction, which has been fully retained, was an £85m senior, 7-year, fixed rate, interest only loan at 63% LTV, secured on a portfolio of three prime office and retail properties located in central London. The second transaction was a 5-year, 74% LTV, partially fixed/floating rate facility to refinance a modern student accommodation and retail property in West London. TH Real Estate will retain the fixed rate mezzanine loan and intends to syndicate the 55% LTV floating rate, senior portion of the loan.

In January, TH Real Estate also provided a £100m, 20-year, fixed rate, facility secured on a regionally dominant retail and business park in the northern part of the UK. The origination process from term sheet to funding took just 4 weeks, demonstrating the speed of execution that TH Real Estate provides to its borrowers; a result of its fully integrated real estate platform.

TH Real Estate has the ability to enter into bilateral loans or participate in club transactions. In addition, it will work with other lenders in order to provide the optimal financing solutions to its borrowers. 

Christian Janssen, Head of Real Estate Debt at TH Real Estate said “We are very pleased to have established the UK debt platform and closed this series of investments, leveraging TH Real Estate’s comprehensive real estate research, equity and debt capabilities.” 

Christoph Wagner, Director of Debt Strategies at TH Real Estate, added “These financings fit precisely within our current UK strategy of providing sponsors with attractive funding solutions for their borrowing requirements in London and regional UK property markets. The diversity of our capital base allows us to target prime assets in core locations and also finance secondary properties in locations that are relatively undersupplied by lenders in the current market.” 

Shawn Kaufman, Director of Debt Strategies, said “ We will continue to expand the TH Real estate lending platform throughout the course of 2015 and work with borrowers, co-lenders and syndication partners to meet the changing requirements of the rapidly evolving UK market.”

Disclaimer
This document is intended solely for the use of professionals and is not for general public distribution. Past performance is no guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. Any investment will be made solely on the basis of the information contained in the Prospectus or offering documents (including all relevant covering documents), which will contain investment restrictions, risks and fees. This document is intended as a summary only and potential investors must read the Prospectus or other relevant offering document before investing. This document is not directed at or intended for any person (or entity) who is citizen or resident of (or located or established in) any jurisdiction where its use would be contrary to applicable law or regulation [or would subject the issuing companies or products to any registration or licencing requirements]. TIAA Henderson Real Estate (TH Real Estate) is a name under which Henderson Real Estate Asset Management Limited provides investment products and services.

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