Aareal Bank has securitized an international property portfolio with a volume of â‚¬ 1.5 billion, which has been taken up by the international investor community (Commercial Mortgage Backed Securities). The portfolio consists of approximately 85 credits, secured through 200 commercial properties in the USA, Germany and in nine other European states. The investorâ€™s come from countries such as the USA, Germany, Austria, Great Britain, Ireland, France, Switzerland and the Netherlands.
Aareal Bank is the joint-arranger and co-manager of the transaction. Commerzbank Securities London is the lead-manager and the second joint arranger. The transaction is rated by Standard & Poorâ€™s and Moodyâ€™s. The highest rated part of the transaction is â€žAAA, Aaaâ€œ which amounts to approximately â‚¬ 1.1 billion.
The transfer of credit risks is covered by Credit Linked Notes as well as Credit Default Swaps. Aareal Bank itself has issued different Credit Linked Notes.
â€žGlobal Commercial Oneâ€œ is the largest commercial securitization and in total the second largest global securitization from Aareal Bank. Already in 2001, the international hotel financing transaction â€žGlobal Hotel Oneâ€œ with a total volume of â‚¬ 1.1 billion has been completed. In relation to this Aareal Bank has recently successfully completed three further securitization deals based on private property financing portfolios. In the years 2001 and 2002 Aareal Bank has securitized international credit risks with a total value of over â‚¬ 6.5 billion.
This new transaction further reflects the consistent alignment of the Aareal Bank towards the â€žBuy and Sellâ€œ-strategy. The bank will be active in the next year as a frequent issuer in the international CMBS Market while securitizing an equivalent volume as this year.
(source: Aareal Bank)