Hypo Real Estate Bank International announces that on June 23rd it has closed its first True Sale CMBS transaction with the securitisation of a single mortgage loan of 246.5 million. This transaction makes it one of the few banks to complete a CMBS in Germany.
The loan, which was provided by Hypo Real Estate Bank International in December 2004, is to a consortium of borrowers controlled by Eurocastle Investment Limited. The loan was used to finance the consortiums acquisition of a well diversified portfolio of 109 properties located in 90 different cities in Germany, from Deutsche Bank. The portfolio generates a gross annual rent return of 25.3 million Euro - 67.8% per cent of which is derived from a highly rated German tenant.
The loan, which has a maturity of eight years, features an 85.75% loan to value and interest coverage of 2.08x at the closing of the loan. It contains a full security package and a set of individually tailored financial and LTV ratio covenants.
Valesco Funding Plc., the issuer, which is incorporated in Ireland, has issued eight classes of notes ranging in rating from AAA/AAA to BBB/BBB- (S&P/Fitch) into the capital market, using the proceeds to purchase the loan from Hypo Real Estate Bank International. The notes are listed on the Irish Stock Exchange.
Hypo Real Estate Bank International structured the transaction as sole arranger and has used the services of Lehman Brothers as lead manager and sole book runner for the placement of the notes which were placed with a wide range of investors and were fully subscribed.
Source: Hypo Real Estate Bank