BAML launches €286.4m multi-borrower Italian CMBS backed by three private equity firms

Bank of America Merrill Lynch (BAML) has launched a five-year €286.4m multi-borrower securitisation of three Italian loans extended to Blackstone, Cerberus and Orion Capital Managers in an all private equity sponsor securitisation dubbed TAURUS 2015-1 IT.

BAMLThe three loans are collectively secured by 14 assets split between offices and retail centres with an average LTV of 62.5% and an average occupancy of 87.8%, implying a combined portfolio valuation of €458.24m.

The capital structure – which will be rated by Fitch Ratings and DBRS – is as follows:

CLASS    SIZE                        EXP. RATINGS          LTV       WAL      BENCHMARK     

                (MM)                    F/DBRS (sf              (%)       (YRS)     INDX                      Maturity

A             EUR[206.0]          [A+/A+]                  [45.0]    [3.9]     3mE+[]                 [FEB 20]

B             EUR[23.0]            [A/A]                      [50.0]    [3.9]     3mE+[]                 [FEB 20]

C             EUR[34.3]            [BBB/BBB(L)]         [58.0]    [3.9]     3mE+[]                 [FEB 20]

D             EUR[23.1]            [BB/BB(L)]             [62.5]    [3.9]     3mE+[]                 [FEB 20]

Total:  EUR[286.4]

Expected maturity is February 2020 while the legal final maturity is November 2027. BAML will retain on an ongoing basis a material net economic interest of at least 5% of each loan.

BAML extended a €120m loan to Orion – dubbed The Globe Loan – to finance Orion’s €198.8m acquisition of three secondary Italian shopping centers from Gruppo Unicomm, the hypermarkets group.

The Globe Loan is secured by Palladio Shopping Center in Vicenza, Emisfero in Fiume Veneto and Emisfero in Monfalcone.  The gross rent is €15.1m, the net operating income (NOI) is €13.8m and occupancy is 98.4%.

According to il Quotidiano Immobiliare on 2 December, BAML priced the €120m loan at just under 300 basis points. BAML has spun a €106.8m slice of the original €120m Globe Loan in TAURUS 2015-1 IT.

CoStar News understands that the Fashion District Loan was extended to Blackstone Real Estate Partners IV to finance its acquisition of two retail outlets in Northern and Southern Italy, specifically in Mantua and Molfetta. 

Blackstone paid €123.7m to the Fashion District Group – with the price including the 100% purchase of companies responsible for commercial management of these assets.  The purchase price of the two retail properties alone was €103m and closed on 31 July 2014.

In the less than six months since the trade closed, these two assets now carry a market value of €130.9m, according to this afternoon’s deal announcement by BAML, which reflects a 27% value increase.  The annual gross rent on the Fashion District Loan is €12.1m and the NOI is €11.1m.

The Calvino Loan was extended to Cerberus which financed its acquisition of six office properties in Italy from The Atlantic 2 Berenice listed property fund, managed by IDeA FIMIT for €143.2m. 

However, the Calvino Loan also includes three additional properties which together are valued at €152.3m.

The six properties which Cerberus acquired last August were:

  • Via Lancia 55, Turin: the complex consists of two buildings for the telephone exchange, fully leased, sold at a price of €27.0m.
  • Via 9 Jervis, New Ico, Ivrea: part of the building with office space, partially leased, sold €17.5m.
  • Via Pianciani 26, Rome: building sky-earth destination offices (ground floor commercial), fully leased, sold €35.2m.
  • Viale Sarca 222, Building 307, Milan: building sky-earth destination offices, fully leased, sold €18.8m.
  • Via Paracelsus 22,24,26, Agrate Brianza, Province of Monza and Brianza: estate sky-earth destination offices, partially leased, sold €8.9m.
  • Viale Milanofiori and 1F (f4-11 stairs), Assago, Milano: building sky-earth destination offices, partially leased, sold €35.6m.

About CoStar News

Finance Editor, CoStar News
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