Merry Hill CMBS closes this month

Deutsche Bank’s second new CMBS, secured against the Merry Hill regional mall in Dudley, is expected to close at the end of January.

The £210m deal, a three-tranche securitisation of a five-year loan to Queensland Investment Corporation, has been marketed in the US as well as Europe. QIC owns 50% of the 1.7m sq ft scheme and Westfield owns the remainder.

Deutsche Bank refinanced the loan, one of the largest in the DECO 12-UK 4 CMBS, last summer with a view to securitising or syndicating the new debt.

This is the first issue in Europe since the bank re-opened the CMBS market here last June, with the securitisation of debt on Chiswick Park. However, the market shut again almost immediately.

Merry Hill differs in that there is no X-class for the bank, which one source said was not expecting to make any profit. It also differs in that the security for the loan is to a QIC company rather than a mortgage.