Deutsche Bank’s €679.9m CMBS – DECO 2014-BONN – has been sold at a blended margin of less than 200 basis points.
The loan, secured against 29 German office assets owned by IVG, has the following capital structure:
CLASS SIZE(€mm) S&P/Fitch COUPON LTV (%)
(+3 month Euribor)
A 330.0 AAA/AAA 125 bps 33.5
B 50.0 AA+/AA+ 165 bps 38.6
C 77.0 AA /AA- 190 bps 46.5
D 92.0 A/A- 235 bps 55.8
E 89.0 BBB/BBB- 345 bps 64.9
F 41.9 BB+/BB 450 bps 69.1
The deal is another step in the European CMBS market’s recovery this year and takes total volumes to €4.2bn. The 12 deals issued this year is similar to last year’s number, although volumes are down by around half. Next year it is thought could be better for the sector with Goldman Sachs, Deutsche and Bank of America Merill Lynch and other banks including Citi all thought to have possible product in the pipeline.
BAML is also the joint lead manager for the BONN trade and Situs has been appointed as primary and special servicer. Deutsche will retain at least 5% of the notes in each class.
The portfolio of assets totals around 5m sq ft. All of the properties are located in the country’s seven largest cities and have an average unexpired lease term to break of 5.7 years. Allianz accounts for 55% of the portfolio’s income.
The original loan was made at a margin of 240 basis points. The deal is the bank’s fourth in Europe this year which makes it the leading European issuer in 2014. It is the second largest deal after Westfield’s £750m securitisation of its Stratford regional mall in east London where Deutsche was joint adviser.