NEW YORK— Deutsche Bank here has reportedly agreed to provide some $1.2 billion in mortgage financing to Chicago, IL-based Strategic Hotel Capital (SHC). It was noted the SHC financing consists of two components: a $725-million floating-rate loan secured by seven hotels slated to be retained by privately held Strategic, and nearly $500 million of fixed- and floating-rate mortgages on a portfolio of properties designated to be owned by the public company SHC is preparing to spin off (with Deutsche Bank supposedly expecting to get the go-ahead to underwrite this IPO). It was pointed out Deutsche Bank beat out Credit Suisse First Boston and Goldman Sachs for this financing endeavor, allegedly because of the advantage stemming from its origination of the existing mortgages on the properties involved.
