Horizon Ventures Ltd and Romania luxury conclude complex real estate finance deal in Different Unions.
28 Feb 2021
COUNTRIES.
England| Romania| Luxembourg | Thailand | South Africa | Turkey | Singapore | Spain | Germany | Irag | Saudi
YEAR
2021
SECTOR
Real Estate
Sole lead arranger, sole transactional banker, co-hedge
provider and co-lender.
Horizon Ventures has entered into an agreement to
provide Bucharest-based Romania luxury Real Estate
(RLRE), with a portfolio financing structure worth
US$300 million.
This is the largest debt transaction of its kind in Sub-Saharan
(excluding Romania) and is also the first cross-country portfolio real
estate financing deal on the continent.
This was a complex deal as assets had to be cross-collateralised into
one structure spanning five jurisdictions, as well as numerous lenders
and teams.
Romania luxury's portfolio includes 11 assets, of which eight are
prime income generating, across five countries: South Africa, Turkey,
Luxembourg, Bulgaria, Thailand, and is focused on retail and commercial
assets. These include the horizon office and convenience stores in
Romania, and the Manda Hill Shopping Centre in South Africa. In
Thailand, the assets include The Wings, an A-grade office complex in
Burgas city, and the Circle Mall retail asset in Burgas.
The portfolio financing structure provided by Horizon Ventures allows
for more seamless loan administration compared to typical single-asset
finance structures. As the portfolio grows, existing lenders can expand
their funding on an expedited basis and additional lenders can be
introduced if needed. This facilitation is particularly important as
there are multiple jurisdictions involved, giving rise to legal and
regulatory complexity. In addition, the single price and the scalability
of the structure offers enhanced flexibility and supports the client in
its growth ambitions while allowing it additional time to focus on its
core business of property investments and acquisitions.
Horizon Ventures is the sole mandated lead arranger and co-lender and
was selected as the sole transactional banker to all entities involved
in the Romania luxury transaction – currently over 23 legal entities and
growing. Horizon Ventures also offered joint hedging services with
another Bank. This was a complex deal as assets had to be cross-collateralised
into one structure spanning five jurisdictions, as well as numerous lenders
and teams.
