Gagfah’s €2bn German Residential Funding 2013-1 CMBS, secured by a 61,613-strong multi-family residential portfolio, will price and close on Thursday, in an agency-style securitisation three times as large as initially planned.
Pricing guidance was issued this afternoon as follows:
- Existing unrated senior subsidised debt: €228.7m – 6.7% LTV;
- Class As: AAA/AAA: €1.2444bn – 43% LTV, WAL 5.2yrs; guidance 3mE +115 bps;
- Class B: AA/AA: €239.8m – 50% LTV, WAL 5.2yrs; guidance 3mE +160 bps;
- Class C: A/A: €137.1m – 54% LTV, WAL 5.2yrs; 3mE +210 bps;
- Class D: BBB/BBB: €274m, 62% LTV, WAL 5.2yrs; 3mE +300 bps;
- Class E: BBB-/BBB Low: €102.8m, 65% LTV, WAL 5.2yrs; 3mE +350 bps
Fitch Ratings and DBRS have rated German Residential Funding 2013-1 CMBS.
Gagfah will retain the €105.2m class F notes, in line with the Capital Requirements Directive.
The guidance pricing is slightly wider than Gagfah’s previous German multi-family CMBS, the BAML-issued €1.07bn Taurus 2013 GMF 1, which priced just over a month ago with the AAAs at 105 bps, the AAs at 150 bps and the As at 200 bps.
The collateral portfolio consists of 61,613 residential units, 469 commercial units, one senior home, 11,953 parking units and 827 other units. There is a 19% Berlin concentration in an otherwise geographically spread portfolio.
CBRE valued the Gagfah multi-family portfolio market value at €3.44bn in May 2013, reflecting a 64.7% LTV, inclusive of the €228.7m senior subsidised debt.
Fitch wrote that the quality of the collateral is above average compared with other German multi-family deals, with stable property cash flows and vacancies in the 4-5% range since 2010.
The €1.99bn five-year loan – split 95% fixed and 5% floating by balance – matures in August 2018, with a one-year extension.
Goldman Sachs has provided a €48.9m liquidity facility, sufficient to cover approximately 18 months of senior fees and interest on the rated notes, protecting the transaction from temporary shortfalls in interest available funds.