Deutsche Bank closes £380m sequel to Chiswick Park securitisation

Deutsche Bank this month closed its second CMBS secured on Blackstone’s Chiswick Park, securitising £380m of a £400m senior loan it recently provided to refinance the asset.

The three-year DECO-13 CSPK CMBS, which was unrated, was sold in three tranches: £269.8m of class A notes at 155 basis points over three-month Libor; £64.4m of class B notes at 211bps; and £45.6m of class C notes at 240bps.

The decision to have an unrated issue meant the deal proceeded quickly, taking only about five weeks from the time Deutsche Bank made the loan.

It also saved on costs such as rating agency fees and provision of a liquidity facility. The deal was aided by the fact that investors had shown interest in taking the CMBS in unrated form.

The west London business park was previously securitised by DB in 2011, in the first European CMBS placed in the market since 2007, and when borrowing was more expensive.

Then, the five-year, rated £303m issue achieved a £235m, AAA-rated class A tranche carry­ing a 175bps margin; a £30m AA-rated class B at 275bps; and a £37.245m, A-rated class C tranche at 375bps.

Bondholders were repaid last month and some have rein­vested in the new issue. The latest refinancing also includes a £200m junior loan, advanced by Apollo Global Investors.

Deutsche Bank was advised by law firm Paul Hastings. • The refinancing of Toys R Us’s UK store portfolio via a privately placed CMBS will be completed this month.

Cairn Capital advised Toys R Us on structuring the Debussy DTC issue, which was bought by investors in the previous CMBS it refinances.

Pimco acquired the £184.2m of class A notes for 5.95% and Marathon Asset Management the £52.6m of class Bs for 8.25%.

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