Immeo 2 owner refinances €387m of German CMBS

A Foncière des Régions’ subsidiary has refinanced a further €387m of its securitised debt in Germany with LBBW and Landesbank Berlin.

French SIIC Foncière Développement Logements (FDL), which owns Immeo Wohnen, borrower to the €1.4bn Immeo Residential Finance No 2 CMBS, has secured a new 9.5-year facility at an average rate of 4%, secured against nearly 10,000 homes. Including proceeds of €120.3m.

realised from asset disposals by FDL since the start of 2011, the refinancing has prepaid around 40% of the remaining securitisation. FDL now has €537m of securitized debt left to refinance from mid-2012.

This follows an initial partial refinancing of €207.5m in December 2010 through BayernLB and Berlin Hyp; an active bond redemption policy, accounting for a balance before refinancing of €88.8m; and a €357.5m property disposal strategy when commitments are taken into consideration.

Immeo’s proposal to extend the seven-year securitised loan by 18 months to June 2015 is on hold, however. Noteholders are thought to have dismissed the proposal a year ago, partly because the terms on offer were not sufficiently attractive.

The borrower had also requested a reduction in the scheduled amortisation to reflect the reduction in portfolio size. Only the Class A noteholders would have received compensa-tion in this scenario – a consent fee of 0.25% and an extension fee of 0.75–2%, subject to how much debt remained outstanding in December 2013 and the timing of refinancings achieved.