Deutsche Bank is refinancing the remaining unpaid balance of the maturing Quokka Finance CMBS, in a slightly enlarged €386m unrated re-securitisation which is expected to close by the end of next week.
BGP Investments, the holding company for legacy joint venture partners Babcock & Brown and GPT’s nine of the 11 original special purpose vehicles (SPV) which housed the German multi-family portfolio, confirmed the transaction this morning in a brief email statement.
The nine legacy SPVs had an outstanding securitised debt of €341.2m, out of a total remaining balance for Quokka Finance CMBS of €555.45m, as at 1 March this year, according to the latest published quarterly investor note.
In the first half of 2007, BGP Investment sold the majority shares in Emersion and Domus to Colonia Real Estate AG, which was subsequently taken over by TAG, the German listed property company.
TAG refinanced its two outstanding loans – the circa €176.6m Emersion loan and the €37.7m Domus loan, secured by more than 11,000 German multifamily assets and with a legacy May 2008 valuation of €408.9m – earlier this month in the German banking markets.
The nine remaining loans, which are to be re-securitised, are secured by 13,730 predominantly Germany multifamily assets, spread across a huge spread of towns and cities, including by weighting Berlin, Kiel, Cologne, Muenster, Nuremberg and Garching.
However, the re-securitisation also includes additional German multi-family properties outside the original collateral pool.
The weighted average LTV of the nine remaining loans, amounting to €341.2m, was 69.9% as at March 1. On which basis, assuming a similar leverage for the extra undefined additional collateral for the upcoming €386m Quokka Finance re-securitisation, this would imply a portfolio value of around €552m.
The re-securitisation will be Deutsche Bank’s second unrated CMBS this year, after a similar re-securitisation of Blackstone’s Chiswick Park transaction, the £380m DECO 2013-CSPK CMBS.
In the case of the this year’s Chiswick Park CMBS, Deutsche Bank was able to rollover existing noteholders into the successive transaction, with debt investors already comfortable with the risk profile, mitigating the need for ratings which enabled the issuing investment bank to keep down costs and progress to closure efficiently.
BGP Investment s.à r.l. is a Luxembourg unlisted private company which holds interests in portfolios of European real estate assets through a range of special purpose vehicles. It holds approximately €1.3bn in assets in Germany, France, the Netherlands and Denmark