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In one of the biggest financing assignments of the year, a Singapore pension fund has tapped Lehman Brothers and Morgan Stanley to provide more than $900 million of fixed-rate mortgage debt on a portfolio of U.S. office properties.
The spread on the loan is tighter than 100 bp over swaps, according to market sources, reflecting the fact that just about every large-loan shop competed for the business.
Lehman and Morgan Stanley did not bid together, but their packages contained similar terms. The pension fund, which is controlled by the Singapore government, apparently did not want to disappoint either and asked them to join forces. Morgan Stanley has a long relationship with the fund, acting as advisor for a high-yield real estate vehicle that it operates in the U.S. Credit Suisse...