Hogan Lovells Advises QIC on the Refinancing of the Merry Hill Shopping Centre

LONDON, 17 February 2012 - Hogan Lovells has advised QIC Global Real Estate (QIC GRE) on the refinancing of £210m of debt provided by Deutsche Bank secured on QIC GRE's 50% interest in the Merry Hill shopping centre which Deutsche Bank has sold into the DECO 2012-MHILL LIMITED commercial mortgage backed securitisation (CMBS), launched in February 2012 and announced on 16 February.

In 2006 QIC GRE acquired a 50% interest in the Merry Hill shopping centre and adjoining properties in the West Midlands (Merry Hill) from Westfield, financing the acquisition of its interest with a combination of internal and external financing. The external finance was provided by Deutsche Bank and in 2007 this debt was securitised by way of sale into the DECO 12-UK 4 CMBS, where it formed one of the two largest loans in the loan portfolio being securitised.

In July 2011 we advised QIC GRE in respect of the refinance of £210m of this debt on the basis that it would be securitised in a new securitisation vehicle. The refinancing took into account investor and regulatory requirements in respect of the proposed securitisation.

The securitization has been structured as a single loan single borrower CMBS and, following the successful securitisation by Deutsche Bank in relation to the Chiswick Park office development in 2011, marks a further important step in the re-opening of the CMBS market.

The Hogan Lovells' team advising on the refinancing was led by London capital markets partner Tauhid Ijaz, with real estate partner Michael Stancombe and tax partner Philip Gershuny, supported by associates David Palmer and Michael Stott in relation to capital markets matters; senior associates Alison Ramsey and Jill Pittaway and associate Sheena Ray as to real estate matters; and senior associate Lee Squires as to tax matters. 

Commenting on the transaction, Tauhid said:

"Having originally advised QIC GRE on the acquisition and financing of their interests in the Merry Hill Shopping Centre we are pleased to have advised the client on this refinancing in a challenging market environment."

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