The British Land Company PLC announces that it has released Exchange House from the security pool that supports the Morgan Stanley Mortgage Finance (Broadgate) securitisation. Since 1999 both the debt service and the loan to value ratios have improved substantially through rent increases, valuation uplifts and amortisation of the bonds.
The original rating of the bonds assumed no rental growth and the terms of the securitisation therefore permitted asset removals, subject to the consent of the trustee and affirmation of the ratings of the Bonds. Capita IRG Trustees has given that consent and each of Standard and Poors, Moody’s and Fitch has confirmed the ratings of all
classes of Bonds.
At 31st March 2004 values, the properties remaining in the security pool amount to £1.97 billion. The release of Exchange House adds over £300 million to the amount of unencumbered assets.
Source: British Land
