Returns rise to 1.4%
UK commercial property total returns were 1.4% in June, according to the MSCI IPD Monthly Index. Growth in property values of 0.9% and income returns of 0.5% helped drive returns up from 1.2% in May. Offices and industrial were the strongest segments with total returns of 1.8%. Returns for the second quarter of the year reached 3.6%.
Deutsche Bank launches CMBS
Deutsche Bank has launched a €316m CMBS comprising Dutch, German and Belgian loans made to MStar, Ares and the largest to PPF Real Estate. The CMBS, named DECO 2015-Charlemagne, has an average underlying debt yield of 12.2% on an LTV of 64.2% over 4.5 years. Capital structure and pricing details are due in the coming weeks.
Secure launches £100m fund
Secure Trust Bank has launched a £100m fund to finance commercial-to-residential projects. The alternative lender launched the Property Conversion Fund on the back of the government’s announcement in April to create a £1bn brownfield regeneration fund.
pbb in Frankfurt flotation
Deutsche Pfandbriefbank has floated on the Frankfurt Stock Exchange, achieving a total placement volume of nearly €1.2bn (£837m). The flotation achieved a price of €10.75 a share and was oversubscribed on its initial placement. As a result, the bank released an additional 6,589,289 shares, adding a further €71m to the capital raised.
