The bank’s €250.04m DECO 2014-TULIP has a senior tranche of €170m that has a coupon of 98 basis points above three month Euribor.
The CMBS is made up of two loans made by the German bank: one to PPF Real Estate Holding and the other to a joint venture between Mount Kellett Capital and Sectie 5 Management.
The CMBS will be secured against 20 retail (54.6%), office (42.2%) and mixed-use (3.3%) properties with a combined valued of €438.85m. They have a weighted average lease term of 4.6 years, total 238,048 sq m and are 85.8% occupied.
The capital structure as rated by Standard & Poor’s and DBRS is:
Class (€mm) S&P/DBRS rating Coupon
A 170.00 [AAA/ AAA] Three month Euribor +98 basis points
B 20.00 [AAA/ AA ] Three month Euribor +120 basis points
C 20.00 [AA+/A(h)] Three month Euribor +155 basis points
D 20.00 [AA /A(l)] Three month Euribor +170 basis points
E 20.04 [A / BBB] Three month Euribor +210 basis points
Deutsche Bank is to retain a 5% interest in each of the class of notes which have an expected maturity of 27 July 2019 and a legal final maturity of 27 July 2024. The deal is expected to close in the middle of next month.
The initial €130.15m loan to PPF funded its acquisition of a portfolio of nine office and retail properties in July at a margin of 500 basis points over three-month Euribor.
The €125m loan to Mount Kellett and Sectie 5, closed in May, financed 11 shopping centres and was priced at 310 basis points over three-month Euribor. The investors bought most of the assets from Corio in January.