16 Apr 2010

Investcorp Real Estate, the US-based real estate arm of alternative investment manager Investcorp, today announced its origination of a $16 million mezzanine loan secured by the Cole Credit Property Trust Retail Portfolio I (“Cole I Portfolio”), a 599,209 square foot, 22-property, single-tenant portfolio located in 11 central, eastern and southern states.  The portfolio is comprised of 21 retail assets and one office asset.

Investcorp’s loan origination took place together with a new mortgage origination by Royal Bank of Scotland, which was included in the RBS Commercial Funding Inc. 2010-MB1 CMBS transaction.  The $51.6 million combined loan proceeds were used by Cole Real Estate Investments to refinance outstanding debt on the portfolio.  Further financial terms of the transaction were not disclosed.

Christopher Hoeffel, managing director with Investcorp’s real estate group, said: “With our flexible, value-oriented approach to investing, Investcorp has been a trusted and respected partner in the market for origination and acquisition of debt for many years now. We’re pleased to have contributed to the financing of the Cole portfolio because of the quality and experience of its industry-leading sponsor, its geographic diversity and its strong tenancy.

“In terms of the broader market significance, Investcorp is excited to be participating in the first multi-borrower commercial mortgage backed securities transaction since 2008.  Cole I Portfolio signals an awakening in the market for real estate debt and as the market continues to open up, Investcorp expects to remain a prominent and active participant.”

Cole I Portfolio is 100 percent occupied by seven leading national and regional tenants.