ING Real Estate Finance is embarking on an aggressive European lending drive to combat run-off from its €25bn (£20bn) global real estate finance loan book.
The Dutch group’s loan book is currently €1.5bn-€2bn less than its €25bn target and it is aiming to make up the shortfall by the year end.
It is planning to target European markets such as the UK, Germany, Italy, France and Spain where it has a high deposit base through ING Direct and is keen to underwrite “conservative deals with top sponsors”.
ING Commercial Banking Real Estate Finance managing director Michael Shields said that the move came after a subdued period of lending coupled with accelerated deleveraging to meet Basel III Tier 1 capital ratio targets.
The London-based head of ING REF western Europe, US and structured products, said: “ING is definitely in that group where the assets are coming down faster than we thought they would.”
He added: “We have stopped the bleeding and now we’re out there to be aggressive – more aggressive that I thought 12 months ago.”
The lender participates typically in “plain vanilla” deals targeting the office, retail, logistics and residential sectors.
In June ING led the circa €750m financing of Chelsfield’s and the Saudi Olayan Group’s €1.2bn purchase of a prime Paris property portfolio.
The Dutch lender, which co-ordinated the underwrite from its London office, is understood to have taken a €300m position, while French banks BNP Paribas, Crédit Agricole CIB and Société Générale took circa €150m each, all on “competitive terms”.
The lender’s €25bn global real estate finance loans under management is split, with 50% in the Netherlands and the remainder spread internationally.
bridget.oconnell@estatesgazette.com
