DB’s Chiswick Park CMBS hits the road

Deutsche Bank’s securitisation of Chiswick Park has been officially launched this week. A one-week roadshow will begin on 23 May, with the bank lined up to talk to investors like L&G, M&G, AXA, Aviva and Henderson. The £302.2m floating-rate CMBS, named DECO 2011-E5 and rated by Standard & Poor’s and Canadian rating agent DBRS, features three tranches: a £235m, AAA rated A tranche; a £30m, AA rated B tranche; and a £37.2m, A-/A rated C tranche.

Secured against Blackstone’s nine-building Chiswick Park complex, the five-year loan has a 66% loan-to-value ratio and an interest cover ratio of 2.42x. It is due to mature in May 2016. The most current pricing is thought to be 165bps for the AAAs; 250-300bps for the AAs; and 300-350bps for the As. The pricing will be fine-tuned after the roadshow, however, depending on investors’ appetite for the most senior notes. The collateral term sheet will be released on 23 May, followed by the preliminary offering circular on 27 May, when Deutsche Bank’s sales and syndicate desks will start  selling the bonds and the rating agencies will produce a pre-sale report.