European commercial mortgage-backed security (CMBS) deals
are traditionally few and far between, but two recent deals
suggest the market could slowly be coming back to life.
The Irish Stock Exchange (ISE) hosted an Italian and a UK
CMBS transaction, listed on November 27 and December 6
respectively. While both transactions used a standard EU
securitisation structure, they are particularly noteworthy
because they are the only two securitisations of commercial
loans in each jurisdiction this year.
In the first deal, the only UK public transaction, SPV
Taurus 2017-2 UK DAC sold commercial mortgage-backed floating
rate notes due November 2022. The SPV was created by Blackstone
to securitise a floating rate senior commercial real estate
loan worth £436.8 million ($582 million) advanced by Bank
of America Merrill Lynch (BAML) for the acquisition of 127 UK
commercial and industrial properties.
The securitisation deal covers a £364 million senior