Gagfah is home and dry with GRF deal


Gagfah has just pulled off a whopper of a CMBS, securitising all €2bn of debt about to mature on its so-called GRF portfolio.

The German multi-family housing company will not have been as happy with the pricing as it was for its earlier CMBS, the merely €1bn-sized Taurus 2013-1, secured on its Woba housing empire in Dresden.

The new issue closed just as the US Federal Reserve confirmed it would cut back its stimulus programme, causing equities to fall and bond yields to rise. Gagfah had to price higher margins on the class D and E bonds than the original guidance.

But after the challenges the company has had – litigation (now settled) over Woba and a change of CEO – it will be pleased to have pulled it off at all.