ING Real Estate has announced that it has successfully closed its first collateralised mortgage-backed securities (CMBS) transaction via LEO (UK) CMBS No.1 plc. The £182.75 million (€267.2 million) transaction was arranged and lead-managed by ING Wholesale Banking on behalf of ING Real Estate Finance, which originated the underlying loan. The loan is secured on part of the European headquarters of Goldman Sachs in London.
The issue comprised £100 million (€146.2 million) Class A1 Notes rated AAA/Aaa, £35 million (€51.2 million) Class A2 Notes rated AAA/Aa2 by S&P and Moodys respectively and £47.75 million (€69.8 million) Class B Notes. The Class A Notes were listed in the Irish Stock Exchange. The unrated and non listed Class B Notes were placed with ING Real Estate Finance UK, London Branch. ING Real Estate Finance will be the servicer of the loan.
The structure was designed to sell-down a significant portion of the loan to third party investors while allowing ING Real Estate to retain a position in the loan via its purchase of the Class B Notes.
There was an overwhelming interest from investors, which resulted in tight pricing on the Class A Notes.
Hein Brand, CEO ING Real Estate Finance, said: "The European CMBS market is almost certain to show substantial growth in the coming years. The transaction signals ING Real Estates intention to be active in this important segment of the market."
Source: ING Real Estate