BNP Paribas has privately placed its €85m Lusso Srl CMBS, a securitisation of a loan backed by the luxury retail centre Sicilia Outlet Village in Sicily, Italy.
The original €85m loan made in March this year was to Sicilia’s owners, Stilo, the real estate arm of the luxury brand and property firm Percassi Group. Sicilia was valued at €140m at the time reflecting an initial loan-to-value of just under 61%.
The margin on the loan was 400bps and the blended margin of the CMBS is 386bps. The weighted average life of the two tranches of the CMBS is 6.2yrs with maturity in March 2022.
The issuance of the unrated, floating interest rate CMBS with spreads is as follows:
Class A: €65m – 46.5% LTV – 320bps
Class B: €20m – 60.8% LTV – 600bps
“Despite [the loan] size, we considered a securitisation from inception in order to optimize the profile and benefits for the client, whilst providing investors with an attractive product,” said Fabrice Susini, global head of securitisation at BNP Paribas, of the Sicilia transaction.
“The ability to underwrite and hold the loan during the securitisation phase was crucial in providing our client with the most suitable debt solution.”
The transaction follows another sole-arranged Italian CMBS by BNP Paribas last year. In March 2014, the French bank privately placed its Reni CMBS, a securitisation of a €135m loan to Italian real estate investment company Immobiliare Grande Distribuzione.