DEAL: only CMBS deals in the UK and Italy in 2017

Author: Amélie Labbé | Published: 18 Dec 2017

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.

UK CMBS

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 term loan...