Invesco Real Estate is exploring a mammoth refinancing of €1.8bn (£1.3bn) of properties spread across Europe. The fund manager has appointed Eastdil Secured to advise it on the refinancing of the assets in Invesco's flagship open-ended European fund. Lenders have been approached to provide around €lbn of debt, based on a loan-to-value ratio of 50%-60%. The underlying real estate is believed to consist mainly of office properties spread across countries including the UK, Germany and France. With the end of the year now in sight, the debt requirement will test the appetite of banks for large transactions. The quality of the assets means the pricing on any deal is likely to be keen. It is likely to appeal to the German Pfandbrief banks, which have a low cost of capital and the ability to deliver big-ticket deals. There have been a large number of refinancing deals this year as borrowers seek to take advantage of the liquidity in debt markets and the current low cost of debt to secure finance on attractive terms and lower their overall cost of borrowing.
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