Deutsche Bank has this afternoon launched the €250.04m DECO 2014 TULIP CMBS, in the first multi-loan securitisation comprised of different sponsors and the first backed by Netherlands real estate since the global financial crisis.
The DECO 2014 TULIP CMBS is comprised of two senior loans – the €125.49m Windmolen Loan, secured by three transactions of sponsor PPF Real Estate Holding, and the €124.5m Orange loan, secured by a joint venture between Mount Kellett Capital Management and Sectie 5 Management B.V.
The two loans are secured by 20 retail and office properties, with 291 tenants, in the Netherlands with a combined market value of €438.85m.
The capital structure of DECO 2014 TULIP is as follows:
- Class A: €170.00m, 21.2% debt yield (DY), 38.9% LTV, 4.0 WAL
- Class B: €20.00m, 19.0% DY, 43.4% LTV, 4.2% WAL
- Class C: €20.00m, 17.2% DY, 48.0% LTV, 4.2% WAL
- Class D: €20.00m, 15.7% DY, 52.6% LTV, 4.2 WAL
- Class E: €20.04m, 14.4% DY, 57.2% LTV, 4.2 WAL
Standard & Poor’s and DBRS are expected to rate DECO 2014 TULIP but are yet to confirm final ratings. Expected maturity is 27 July-2019 and legal final maturity is 27 July 2024.
Deutsche Bank AG, London Branch will retain on an ongoing basis a material net economic interest of at least 5% of each class of notes.
The transaction is expected to close in October.
Deutsche Bank underwrote the original €130.15m five-year– priced at 500 bps over three-month Euribor – on 23 July 2013 to finance PPF Real Estate Holding’s acquisition of a portfolio of nine office and retail properties across the Netherlands.
The cut off loan balance is now €125.49m and the updated valuation of the portfolio is €233.1m, according to a CBRE July 2104 valuation, which puts the LTV at 53.8%.
The total GRI as of the cut-off date from the Project Windmolen portfolio is €23.29m and the occupancy is 81.1%. The overall weighted average lease term (WALT) to first break is 5.7 years.
Deutsche Bank underwrote the original five-year €125m Orange loan to facilitate the acquisition of a portfolio of 11 shopping centers across the Netherlands by a 95:5 joint venture between Mount Kellett Capital Management and Sectie 5 Management.
Mount Kellett and Sectie 5 acquired the portfolio for €176.0m, financed with Deutsche Bank’s €125.0m senior loan – priced at 310 bps over three-month Euribor and which funded on 14 May 2014.
However, the most recent re-valuation, by JLL in May 2014, shows the market value of the portfolio has risen to €205.74m, which puts the loan’s LTV 60.7%
The total GRI from the Project Orange portfolio is €19.1m and the occupancy is 92.8% as of the cut-off date. The overall WALT to first break is 3.4 years.
The overall occupancy of the portfolios is 85.8% and the WALT is 4.6 years to first break and 4.8 years to expiry.