German American Capital Corp., a Deutsche Bank AG U.S. unit, plans to publicly offer about $890 million in commercial mortgage-backed securities, supported by real estate loans it made, market sources said on Thursday.
The collateral loan pool consists 13 loans, worth $1.232 billion, of which $981.3 million are held in a trust. Of that amount in the trust, $890.15 million of the loans will back the publicly offered CMBS and the remainder will support securities to be sold in the Rule 144a market, according to a Tuesday pre-sale report by MoodyÂ's Investors Service.
MoodyÂ's rated the average quality on the commercial properties that secure the dealÂ's loans as 'above average.'
In a breakdown of the loans by property types, 44.5 percent of them were made to office buildings, 37.3 percent retail space and 18.2 percent to mixed-use properties that house office and retail tenants, MoodyÂ's said. All the 13 mortgage loans are insured by policies that 'address terrorism risk,' according to MoodyÂ's.
The dealÂ's largest mortgage is backed by a leasehold interest on an office building in mid-town Manhattan in New York City, worth $175 million or equivalent to 17.8 percent of the loan trust.