Macquarie Corporate and Asset Finance (CAF) Lending is has acquired a portfolio of approximately €90 million face value of first lien residential mortgages over approximately 700 properties throughout Germany.
The portfolio was acquired from RBS's Non-Core Division through a competitive auction, where Macquarie was able to address the seller's key requirements by delivering a binding purchase offer and completing the purchase ahead of the required timeline.
The acquisition is in line with Macquarie's strategy of expanding its real estate lending book through opportunistic acquisitions of high quality assets.
The acquisition represents Macquarie CAF Lending's first investment in German residential mortgages, which is an attractive sector due to steady property prices, good borrower covenants and its stable jurisdiction.
This investment is further evidence of Macquarie's ability to help banks deleverage their balance sheets and allow them to focus on their core businesses.
Macquarie developed a customised financing package for AREA Property Partners to facilitate AREA's discounted purchase from a European bank of an existing senior mortgage secured by The Apthorp, a luxury condominium building located in Manhattan's Upper West Side. AREA is an institutional real estate fund manager with $US13 billion invested since 1993.
The financing consisted of a $US125 million senior mortgage, split between first-out and last-out notes, and a $US60 million senior mezzanine loan with a partial PIK. Macquarie arranged the senior mortgage financing and brought in a co-lender for half of it, in addition to providing 40 per cent of the senior mezzanine loan, for a total of $US86.5 million between the mortgage and senior mezzanine.
This provided AREA with a complete financing solution that allowed it to recapitalise the property for unit renovations and other capital items to facilitate the sale of the remaining condominium units.
Macquarie Corporate and Asset Finance (CAF) Lending has provided loans of £42.5 million to Towry Group Ltd. Macquarie developed the financing structure alongside the company and its sponsor, Palamon Capital Partners. The structure was tailored to meet the company's specific needs as a financial services organisation with growing assets under management and to allow it to take advantage of growth and consolidation in the sector.
Macquarie provided financing as part of a debt issuance by Towry, comprising:
The company used the proceeds of the issuance to refinance an existing credit facility and reduce its overall financing costs.
Macquarie was the sole lender of an innovative stretched senior financing of a portfolio of 96 London residential flats and houses. The £21.1 million facility comprises a 3.25 year floating rate term loan with a fixed PIK element and zero amortisation.
The company used the proceeds of the issuance to refinance a bridge credit facility and reduce its overall financing costs. Speed was vital in this deal with transaction documents signed within two weeks of agreeing a term sheet and funds released one week later.
Macquarie developed a financing structure tailored for a diverse portfolio of London residential properties. The customised nature of Macquarie's solution proved more attractive to the company than traditional financing arrangements.
Macquarie CAF Lending completed a $US70 million debtor-in-possession (DIP) financing for Reddy Ice Corporation (Reddy Ice).
Challenging market conditions resulted in the Dallas-based company pursuing a debt-restructuring deal with its creditors.
Reddy Ice filed for Chapter 11 bankruptcy protection in April 2012 with a restructuring plan that was supported by Macquarie and the majority of its creditors. As an incumbent lender, Macquarie drew on its familiarity with the borrower and the North American packaged ice market to provide a customised financing solution that met the company's needs.
Working closely with Reddy Ice in advance of the bankruptcy proceedings, Macquarie provided a $US70 million DIP commitment supported by a commitment to provide $US50 million in exit financing to fund the company's emergence from bankruptcy. The custom-built solution allowed Reddy Ice to continue to operate and positioned the company to emerge from bankruptcy on an accelerated timeline to capitalise on strategic opportunities.
Macquarie's ability to respond and execute a transaction in a relatively short timeframe was critical to facilitate the company's plan to exit bankruptcy quickly. Reddy Ice's plan of reorganisation was confirmed on 18 May 2012 and the company intends to exit bankruptcy in late May.
Macquarie CAF Lending completed an $A80 million stretch senior acquisition financing of 1 York Street Sydney, an Australian CBD office property.
Working with an offshore sponsor, Macquarie CAF Lending leveraged its extensive experience in commercial real estate and credit investing, together with its familiarity with the local market, to provide a customised financing solution within a bespoke ownership and borrowing structure.
This funding assisted the sponsor to complete its acquisition of the upper B grade office property.
Macquarie CAF Lending acquired and restructured a first mortgage facility cross-collateralised by a portfolio of six Class A and B office projects, containing a total of 17 office buildings across approximately 1.1 million square feet. The portfolio is sponsored by Hines, an experienced institutional real estate owner and developer with current assets under control in excess of $US23 billion.
The restructure combined an equity contribution from Hines with a loan resizing and modification to allow for the stabilisation of the portfolio's occupancy over the extended loan term.
Macquarie CAF Lending has provided a senior secured term loan facility with an initial availability of $US40 million, and up to $US75 million over time, to Atlanta-based Communications Capital Group, LLC (CCG), a leading acquirer of cell tower ground leases and rooftop site leases.
Drawing on Macquarie's firm-wide experience as a private equity and credit investor in the wireless cell tower industry, Macquarie CAF Lending was able to provide a customised financing solution that allowed CCG to secure capital to accelerate its future growth plans.
Structuring the financing as an asset-based facility enabled CCG to raise a greater amount of leverage than would otherwise have been possible, with flexibility to draw on the facility progressively as CCG expands its lease portfolio.
Macquarie CAF Lending provided €35 million of financing to StarBev, one of the largest brewery companies in Central and Eastern Europe.
The financing was provided in the form of subordinated fixed rate PIK notes, which were issued as part of StarBev's refinancing of an existing debt facility.
Macquarie CAF Lending provided $A75 million of financing to Energy Developments, a leading generator of renewable energy and provider of remote access power in Australia, UK and US.
Drawing on Macquarie's expertise in renewable energy projects, Macquarie CAF Lending was able to provide a corporate-style facility to Energy Developments, giving the company flexibility beyond traditional project finance and enabling it to pursue its growth objectives.
Macquarie CAF Lending provided NewStar with a $US68 million repurchase facility backed by a portfolio of commercial mortgage loans. NewStar, based in Boston, MA, is a specialised middle-market finance company.
This investment was undertaken by Macquarie CAF Lending's dedicated real estate team, bringing the total financing provided and invested by Macquarie CAF Lending in the commercial real estate sector to over $US450 million since January 2011.
Macquarie CAF Lending structured and provided a $US43 million customised first mortgage facility secured against a Class A office building located in the Baltimore CBD. This customised transitional loan facility provided the sponsor with funding for lease up activity while also accommodating the building's low level of near term cash-flow generation due to multi-year rental abatements in the anchor tenancy lease.
Macquarie CAF Lending successfully completed a transaction to provide $US46.3 million of incremental financing commitment for Deffenbaugh Industries Inc, a leading vertically integrated solid waste management business in Midwest US.
As part of this transaction, Macquarie CAF Lending assisted Deffenbaugh in upsizing and refinancing an existing term loan facility and provided additional funding to allow the company to continue its strategic growth plans.
Macquarie's experience in the solid waste industry allowed it to respond rapidly to Deffenbaugh's needs.