China Investment Corporation and partner AEW Europe have turned to the European duo of ING and CIB Natixis to finance their €1.3bn (£910m) purchase of 10 European shopping centres.
The partners have taken a 50% loan-to-value facility from the Dutch and French banks, in the latest sign that Asian investors are developing stronger relationships with Western lenders.
Like most Asian funds, CIC tended to rely on its domestic banks to finance its early European real estate deals, such as Bank of China, which backed its £780m acquisition of Chiswick Park, W4, (pictured) in January 2014.
The latest loan finances the purchase of the Celsius Portfolio, which CIC and AEW bought from CBRE Global Investors last month. The portfolio comprises malls in France, the Netherlands and Belgium, where the two most valuable assets are located.
The five-year senior loan totals approximately €650m.
ING and CIB Natixis acted as joint lead arrangers on the deal.
It is understood that ING – which declined to comment – will seek to syndicate its portion of the deal in line with its current strategy.
CIB Natixis did not respond to requests for comment. However, it too has been an active syndicator of property loans in recent months.
The latest Dealogic league table ranked the bank fourth in Europe as a bookrunner for syndi-
cated loans (1 August, p30).
The margin being sought by CIC and AEW was believed to be too tight for investment bank lenders, suggesting it priced below 150bps over Euribor.
