Deutsche Bank has closed the securitisation of Chiswick Park with around 20 investors and is already planning a second DECO CMBS transaction before the end of the year.
Chiswick Park: first European CMBS in more than three and a half years
It is understood that around 20 “real money” large asset management investors as well as a some non-European investors bought the three-tranche £302m DECO CMBS-CSPK transactions. The deal was the talk of the Global ABS 2011 conference, held in Brussels last week.
The German bank already has a pipeline of UK loans which are being considered for its next multi-loan CMBS, sources said, including a principal deal expected to close in the autumn thought to be between £300m to £500m in size.
The final pricing for the property bonds was: AAA at 175 bps, AA at 275 bps and A at 375 bps over LIBOR. Deutsche Bank worked hard to gain as diversified a distribution of investors as possible given the limited pool of European CMBS investors.
The AAA notes are understood to have been 1.1 times covered, while the AA notes were 2.7 times subscribed and the AAA tranche was 1.7 times subscribed.
Deutsche Bank first started marketing the CMBS deal back in December with a roadshow of around 40 global invetsors, but in the last month that the bank upped its effort to push through the the first European securitisation in more than three and a half years. It is thought several of the big investment banks are waiting to test the market with their own securitisations.
Goldman Sachs and Citi are just two investment banks understood to be keen to return to lending against UK real estate. The two banks are understood to have lined up behind a number of the four private equity players’ proposed bids for the 25% equity component of the RBS Project Isobel debt fund which houses 30 UK property loans valued at a pre-discount price of £1.6bn.
Deutsche Bank declined to comment.
CoStar Finance 