NEW YORK CITY-From Midtown Manhattan to Downtown Brooklyn, Michael E. Shields, Managing Director at ING Real Estate Finance (USA), is not only busy locally, but globally. In his role at ING’s New York office, Shields provides oversight for the company’s $6.7 billion real estate loan portfolio in the US and communicates with ING’s offices worldwide. With more than 20 years of experience in asset management, restructuring and workouts, Shields talks with GlobeSt.com about new loans, developments and market activity.
GlobeSt.com: With 11 offices worldwide and a EUR35.4 billion portfolio, how does ING Real Estate Finance position itself as a global lender? How do local specialists interact with each other around the world?
Shields: Being a client‐led organization, we set up international service teams that are custom fit to our client’s needs and global management structure, centralized or de‐centralized. Communication is key, each member of a global client service team shares client activity information on a real‐time basis and gets involved in managing the client relationship. Financing a client’s properties in multiple continents deepens our relationship and increases our global hit rate in winning financing mandates from the client.
GlobeSt.com: You predict ING will originate over $1 billion in loans this year; last year’s fourth quarter numbers were around $350 million. What factors contributed to growth in the commercial sector this year?
Shields: Commercial real estate fundamentals have improved in some of the major markets in which we are active and deal flow from our client base has increased substantially over 2010.
GlobeSt.com: ING’s Real Estate Finance group just refinanced the Metropolitan Hotel at 142 West 57th Street for $100 million. What other opportunities are in the hopper for Midtown?
Shields: Midtown is undoubtedly the strongest commercial real estate market in the country, and competition is stiff, as prices have risen substantially in the last six months. While we do not announce new deals until they close, it is fair to say that our global relationships have provided us with a competitive advantage to source new business activity here in New York City.
GlobeSt.com: ING was involved with the financing for the 76‐story Beekman/ Tower near City Hall. In general, does ING see opportunities in markets beyond Midtown like Lower Manhattan and Downtown Brooklyn? If so, what deals are in the pipeline?
Shields: Yes, we have been an active financier of Downtown Brooklyn office and residential properties. Other than the Beekman Tower, we have not been as active in Lower Manhattan. For the right sponsor and asset we would consider financing opportunities in Downtown New York City.
GlobeSt.com: On the REIT side, what sectors are showing strength right now in the US? Retail, office, or multifamily?
Shields: Our lending strategy for retail and logistics focuses on the REIT sectors – we like their strong tenant relationships and extensive market knowledge. We have been very happy with our client’s ability to maintain strong operating performance of assets in our retail and logistic portfolios even in difficult market conditions.
GlobeSt.com: Since ING is the market leader in the Netherlands, what European markets are faring the best in 2011?
Shields: Market conditions are strongest in Germany and France at the moment, although lender competition for real estate financing mandates are fierce. In addition, Poland has demonstrated itself to be resilient and ING has been active in the market.
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