BAML launches €455m CMBS on IVG Immobilien’s The Squaire

Bank of America Merrill Lynch has launched the €455m five-year Taurus 2015-2 DEU CMBS secured by a single loan on IVG Immobilien’s The Squaire property at Frankfurt Airport.

The six-tranche CMBS refinancing loan includes a 7.1% debt yield and matures in January 2020 with a six year tail period.

The loan-to-value is 72.2% based on BAML’s original €470m five-year total loan issued to IVG in January to refinance The Squaire.

The new issuance is comprised as follows:

Class A: €153m – AAA/Aaa at 25% LTV

Class B: €61.2m – AA/Aa2 at 35% LTV

Class C: €61.2m – A/A3 at 45% LTV

Class D: €55.7m – BBB/Baa3 at 54.1% LTV

Class E: €74.1m – BB-/Ba2 at 66.2% LTV

Class F: €39.8m – B/B2 at 72.7% LTV

The Squaire, valued at €644m by CBRE, comprises mainly of office space and a Hilton hotel accounting for 57% and 34% of gross rental income respectively. It has a current occupancy rate of 85.2%.

The first interest payment date is scheduled for August 2015. BAML will retain a material net economic interest of at least a 5% in Taurus 2015-2 DEU.

This is BAML’s second European CMBS launch this year. In January, it issued its five-year €286.4m Taurus 2015-1 IT multi-borrower securitisation of three Italian loans to Blackstone, Cerberus and Orion Capital Managers.