German funding lifeboat saves Mann Island offices

  German fund Commerz Real has struck a deal with Neptune Developments and Countryside Properties to forward-fund the office element of Liverpool’s £120m Mann Island scheme.   The deal will mark a return to the UK regions for the fund, which exited the country in October after pulling its £85m acquisition of a 920,000 sq ft shed in Sittingbourne, Kent.   Commerz Real will invest around £35m in the 140,000 sq ft waterfront office scheme, prelet to passenger transport authority Merseytravel. The deal, which reflects a yield of between 7% and 7.5%, is expected to be signed off within the next month.   An agent familiar with the deal said that Commerz Real’s investment could help to restore confidence in the regional market, where most banks have put large-scale property lending on hold.   “Debt finance has gone and developers need to attract the institutions back,” he said. “The German funds are looking at developers which have long leases in place.”   The 376-flat residential element of Mann Island was funded by Bank of Scotland Corporate last June for an undisclosed sum.   Earlier this month, a consortium of German banks – including Eurohypo, Deutsche Postbank, Immo Bank and Deka Bank – agreed to refinance Land Securities’ and Capital Shopping Centres’ St David’s shopping centre in Cardiff.   Savills is advising Commerz Real; DTZ and Mason Owen are acting for Neptune/Countryside.   david.quinn@rbi.co.uk