Morgan Stanley has bought a £123m senior loan secured against Värde Partners’ UK portfolio.
It has bought the tranche from Starwood Capital’s listed European real estate lending business.
Starwood issued a £158m whole loan to Värde earlier this month. The loan is secured against a portfolio of 141 retail, office and industrial assets spread across the UK.
Morgan Stanley will provide the senior loan over a three-year term with two one-year extension options.
As with most loans from US investment banks, the terms will include a variable interest rate over the course of the loan’s life.
The deal continues the bank’s run of major deals in 2016 that few others have been able to match and is the third major deal the bank has worked on since January.
As the year turned, Morgan Stanley issued a whole loan of €145m (£110m) to finance Starwood’s direct investment in Elm Park, Dublin 4.
The bank was also selected to refinance what has been one of the biggest deals of the year, providing a £710m loan on P3 Logistics’ portfolio of 28 assets across Western Europe.
The loan previous to the Värde deal was the £320m refinancing of Blackstone’s Devonshire Square, EC2.
Other banks have been struggling to win the few deals that have come onto the market as volumes thin amid Brexit concerns.
Most major investments this year have come from Far Eastern players that have often used corporate facilities or pure equity. Most notable of these was Mapletree’s £500m purchase of Green Park in Reading last month.
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