NIBC and ING close €1.05 billion Dutch high street retail CMBS (NL)

On Thursday September 28th NIBC and ING have closed the LEO-MESDAG transaction. LEO-MESDAG B.V. is a €1,050 million Commercial Mortgage Backed Securities transaction (CMBS). It is the 4th CMBS arranged by NIBC, and the 2nd out of its MESDAG conduit program.

Via LEO-MESDAG a broad group of institutional investors has provided financing for a loan granted to a consortium of among others IEF Capital, Bouwfonds Asset Management and PGGM for their acquisition of a retail real estate portfolio of Maxeda (formerly known as Vendex KBB, the largest non-food retailer in the Netherlands). The loan is secured by 70 high street retail properties and 3 car parks, which are all let on long term lease contracts to Hema, V&D and Bijenkorf.

The transaction consists of 7 classes of notes which are listed at Euronext. All three Rating Agencies, Standard and Poor's, Moody's and Fitch Ratings, have assigned ratings to the 5 tranches that have been publicly sold. Pricing on the publicly offered note classes range between Euribor + 19 basis points for the AAA rated notes and Euribor + 80 basis points for the lowest rated BBB class of notes. The expected final maturity date of the Notes is August 2014, the legal final maturity date is August 2019. The Loan to Value ratio on the publicly offered notes at closing of the CMBS is 72.9%.

Source: NIBC

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