HSBC and Société Générale have teamed up to structure UK and French property-backed bond issues.
They are using the capital markets to raise £322m to make two separate loans, of £274m to LCP Real Estate and £48m to Proudreed Real Estate, in a UK commercial mortgage-backed securitisation to be called LCP Proudreed. The issue is secured on 119 UK properties, largely retail but also industrial and distribution.
LCP and Proudreed are developers and investors. Both own in excess of 3m m2 of space and manage more than 550 properties across the UK and France.
HSBC and SocGen are also selling €397.4m of bonds secured by 134 properties throughout France. Warehousing makes up 62% of the portfolio.
The FCC Proudreed Properties bonds will be used to make two separate loans of ¤104.5m to Proudreed France and €292.8m to Paris Properties.
Meanwhile, Citibank is to sell £275m of commercial mortgage-backed bonds secured by 19 properties, mostly offices in Greater London.
Victoria Funding (EMC-III) represents the securitisation of seven commercial mortgage loans originated by Citibank.
The largest is a £115.2m refinancing, which represents 41.9% of the portfolio, secured by the office and retail building Ashdown House, Victoria Street, SW1.
The second-largest loan, of £74.4m, represents 27.1% of the portfolio. It is a 10% share in a syndicated loan. It is secured on a Canary Wharf portfolio of five office buildings, seven interconnected shopping centres and 2,469 car park spaces.
