Deutsche Bank’s Gad Caspy takes over European CRE

Deutsche Bank’s Gad Caspy takes over European CRE
Posted on October 26, 2011 7:48 pm

Deutsche Bank has appointed Gad Caspy as its new European head of real estate, replacing Cyril Courbage who left the bank at the end of September, CoStar News has learned.

http://costarfinance.com/2011/10/26/deutsche-banks-gad-caspy-takes-over-european-cre/

Caspy, currently a managing director in Deutsche Bank’s New York-based global structured credit division, has worked closely with the divisions’ head, Elad Shraga, with their working relationship at Deutsche Bank reportedly dating back to a stint at the bank’s Tel Aviv branch.

Shraga has been integrating the European real estate team into his wider global structured credit division since the turn of the year as the bank seeks to target the much deeper US structured finance investor market for its European real estate debt.

Caspy is expected to relocate to London next month and to drive through the next phase of integration with the European commercial real estate team in the final months of frenetic year for the bank, reflected both in deal flow and personnel changes.

Deutsche Bank is currently attempting to syndicate three UK loans which were originally earmarked as its second CMBS of the year, before the mixture of events during and since the summer evaporated investor appetite for new origination securitised debt.

The Merry Hill loan, refinanced over the summer, is secured by shares in Queensland Investment Corporation and Westfield’s Merry Hill shopping centre on the outskirts of Birmingham. Given that the loan is secured by shares, rather than the property itself, pfandbrief-funded banks will unlikely be interested because they require fixed securities.

MEPC’s Milton Park, an Oxfordshire business park, secures the second £145m loan, which has drawn interest from Deutsche Pfandbriefbank who is understood to be considering how much to take.

The third loan is secured by Marcol Group’s Design Centre in Chelsea Harbour. The syndication effort is headed up by director Fiona D’Silva, who joined from Goldman Sachs over the summer, and director Bhavesh Patel, who has in part replaced Heath Forusz, who left the bank in August.

Last month, Deutsche Bank syndicated the majority of its £305m senior loan, secured by Blackstone’s Mint portfolio to GE Capital Real Estate, GIC and M&G Investments.

Next month, the bank is aiming to pull off the protracted funding of Richard Caring and Stephen Sharp’s 20 Grosvenor Square luxury residential development.

The £330m mixed senior and mezzanine facility is expected to drawdown with the existing lenders on the ticket, despite worsening market conditions and exacerbated capital prudence on the part of lenders.

Yesterday, the bank reported third quarter net income of €777m, but chairman and CEO Josef Ackermann, admitted that “the operating environment was more difficult than at any time since the end of 2008, driven by a deteriorating macro-economic outlook, and significant financial market turbulence”.

Since the turn of the year, Deutsche Bank has aggressively been selling down its exposure to peripheral sovereign debt – from €12.1bn to €4.4bn over the nine months to the end of September.

This includes €1.6bn in Greek debt which has been marked to market at 46% of its notional value leaving the remaining exposure at just €881m.

Deutsche Bank declined to comment.

jwallace@costar.co.uk

http://costarfinance.com/2011/10/26/deutsche-banks-gad-caspy-takes-over-european-cre/

CNNMoney: Top 1% are getting even richer

AMERICAN DREAM DEFERRED
Top 1% are getting even richer
By Jessica Dickler @CNNMoney October 26, 2011: 10:51 AM ET

NEW YORK (CNNMoney) -- From 1979 to 2007, average household income for the nation's top 1% more than tripled, while middle-class incomes grew by less than 40%, according to a new report from a research arm of Congress.

CNNMoney: Should I buy or rent?

Should I buy or rent?
By Walter Updegrave October 26, 2011: 7:33 AM ET

NEW YORK (CNNMoney) -- For the last three years, my husband and I have been renting a house. But I would rather buy than throw my money away on rent. Still, even though we have about $120,000 in savings, great credit and no debt, my husband is reluctant. The job he's had the past two years took 15 months to find, and it pays a lot less than his previous job. He's afraid buying now isn't a good idea because of the shaky economy. What do you think: Should we buy or continue renting? -- Jean J.

Bloomberg: Sales of New U.S. Homes Hits Five-Month High

Sales of New U.S. Homes Hits Five-Month High
By Bob Willis - 2011.10.26 07:11 AM

Purchases of new U.S. houses rose more than forecast in September as discounted prices lured buyers in some parts of the country.

USA Today: New-home sales jump in September as builders cut prices

New-home sales jump in September as builders cut prices

WASHINGTON (AP) – Sales of new homes rose in September after four straight monthly declines, largely because builders cut their prices.

SG: US Housing: Home prices dipped again in August

■ Home prices moved lower in 20 US cities during August (B. Jones)

S&P/Case-Shiller (SPCS) reported that home prices in the 20 US cities that they track fell by 0.05% in August, after a downward revised 0.15% decline in July. The August print marked the fourth consecutive monthly slide and was weaker than the median Street expectation for a 0.1% rise. Since April, home prices have fallen by 0.3%, erasing three quarters of the rise posted in that month. The reported August dip left the index 3.8% below its year-to-year level the smallest 12-month decline since April.

Reuters: U.S. throws lifeline to underwater homeowners

U.S. throws lifeline to underwater homeowners
By Margaret Chadbourn
WASHINGTON | Mon Oct 24, 2011 8:53pm EDT

(Reuters) - U.S. homeowners who owe more than their properties are worth got new help on Monday with the government's expansion of a refinancing program in a step that could help up to 1 million borrowers.

Reuters: Fed Focus: Fed activists loudly signal low bar to easing

Fed Focus: Fed activists loudly signal low bar to easing
By Mark Felsenthal
WASHINGTON | Mon Oct 24, 2011 7:11pm EDT

(Reuters) - Pro-growth activists at the Federal Reserve have gotten noisier, a sign the central bank won't back off aggressive efforts to spur a stronger recovery despite the objections of critics.

CNNMoney: GDP forecast: Growing faster, but not for long

RECOVERY AT RISK
GDP forecast: Growing faster, but not for long
By Chris Isidore @CNNMoney October 24, 2011: 4:18 PM ET

NEW YORK (CNNMoney) -- Economists are a little more optimistic about the nation's economic health, but they don't think the sputtering U.S. recovery is out of the woods.

Bloomberg: Fed Wants to Ensure Housing Affordability, Dudley Says

Fed Wants to Ensure Housing Affordability, Dudley Says
By Caroline Salas Gage - 2011.10.24 12:26 PM

Federal Reserve Bank of New York President William C. Dudley said the central bank wants to keep mortgage interest rates from rising too much and may do more to hold down borrowing costs.