This article is from the Australian Property Journal archive
INVESTA Property Group has secured a new $1.9 billion debt package, in the largest real estate refinance deal in five years, post the global financial crisis.
The package was supported by the big four – ANZ Bank, National Australia Bank, Westpac and the Commonwealth Bank totalling $1.6 billion.
And France’s Credit Agricole, the UK’s BOS International, a subsidiary of Lloyds Banking Group and Bank of China committed to the remaining $300 million.
Clayton Utz advised the consortium of banks. Banking partner Kathy Santikos led the team that advised the consortium which included senior associates, Mrigank Roy and Matthew Wilson.
“It is pleasing to see a refinancing of this size attract strong participation from a diversity of lenders in a market increasingly focused on risk,” Santikos said.
Investa’s CEO and chairman Scott MacDonald said the deal showed that debt capital was available for quality property players, noting that new lenders were entering the market.
“The fact that Australia’s four largest banks came together as cornerstone lenders is a unique outcome, as is the level of participation by the European banks, who are selective in their Australian lending activities.
“Strong interest was received from a range of domestic and offshore banks with proposals to participate exceeding $2.3 billion, resulting in a number of banks being scaled back and some proposals not required,” he added.
MacDonald also noted the entry of Asian-based banks.
“The facility is the Bank of China’s first big-ticket commercial office property transaction in Australia and a strong indication of the bank’s commitment to increase their exposure to Australia.
“China has a much closer and increasing relationship with Australia in many aspects, and I think that’s reflected by Bank of China coming in and making a substantial commitment in the property space,” he concluded.
Allens Arthur Robinson advised Investa.
Property Review