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GE Buys $2.5B Loan Book From Capmark Europe

LONDON-GE Real Estate's collateral is 39 performing assets of retail and office, mostly in Germany. With the closing, GE marks its second Pan-European mega-deal in five months.

By Connie Gore | Updated on April 23, 2008

LONDON-With capital markets worldwide reaching for firmer footing, GE Real Estate has struck its second Pan-European mega-deal in five months for a commercial property loan book. The £1.22-billion [$2.51 billion USD] acquisition of senior and whole loans is secured by 39 performing retail and office properties, predominately in Germany.

GE Real Estate bought the Pan-European portfolio, which includes UK and Swiss assets, from Capmark Bank Europe plc, a Dublin-based commercial lender in the European Union and wholly owned subsidiary of San Mateo, CA-based Capmark Financial Group Inc. The loans average “just over five years” in term, with the mix 75% retail and including “a mall or two,” Michael Rowan, managing director of GE Real Estate UK, tells GlobeSt.com.

Like a previous deal, the acquisition was delivered through its pipeline of sources–and there’s more to come. “We have a strong pipeline of similar transactions with a lot of different holders of loans,” Rowan says. “All the ones we are looking at are performing loans that were to be securitized in CMBS and weren’t.”

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