Bank of America Merrill Lynch (BAML) has launched the first European CMBS of 2016, with the securitisation of a loan written to Blackstone last July to finance a German retail portfolio.
The €317.05 million Taurus 2016-1 DEU securitises the €335 million senior loan which financed Blackstone’s €470 million purchase of the so-called Kingfisher portfolio from Stenham Property last May. BAML said that it will retain at least 5 percent of the underlying loan.
The five-year loan reflected a loan-to-value ratio of just over 70 percent with a margin slightly under 250 basis points, Real Estate Capital reported last July. There is also a €35 million mezzanine loan.
Taurus 2016-1 DEU is arranged over six tranches; a €141.6 million Class A, €38.2 million Class B, €25.5 million Class C, €41.8 million Class D, €52.6 million Class E and the €17.35 million Class F. The deal is due November 2020 with legal final maturity in November 2026.
The securitised loan has a 67.5 percent LTV and is backed by a portfolio valued at €494.4 million of more than 50 mainly retail properties in Germany. DIY retail accounts for 37 percent of the market value, followed by 21 percent for retail parks, supermarkets at 12 percent, shopping centres at 10 percent and retail warehouses at 2 percent.
The 496,936 square metre portfolio has a current occupancy of 92.8 percent and a gross rent of €44.6 million. The weighted average unexpired lease term is 6.9 years. The debt yield net rental income is 12.3 percent.
The European CMBS market has been virtually closed since last autumn, due to volatility in the credit markets and the pricing on this first deal in 2016 will be keenly watched.
Last year, BAML launched a €286 million Italian deal in January and a €445 million German deal in April. Despite market conditions it managed to issue a slimmed-down €145.8 million deal containing loans written to MStar Europe in September.