Frosn 2018: 01 May 2018
A CMBS transaction where the Senior Loan will be secured by, among other things, a portfolio of 63 office and retail properties located throughout Finland. The notes finance 87.9% of a EUR577mln commercial real estate loans to entities related to Blackstone Real Estate Partners advanced by Citibank N.A. London Branch and Morgan Stanley Principal Funding Inc.
The Property Portfolio comprises 63 office and retail properties situated throughout Finland. The assets are predominantly located in the Helsinki Metropolitan Area, which accounts for 73.8% of the Property Portfolio's market value, and Tampere accounts for 23.4% of the value. The Market Value of the portfolio was €887.7m with the top 6 assets representing 38% of the total Portfolio MV. The properties offer 524,060 sqm of net rentable area approximately 70% occupancy and a 3.3 year weighted average unexpired lease term to break. The Property Portfolio benefits from a diversified tenant base and a large proportion of GRI generated from government entities, where the top 10 tenants range from government entities to retailers and account for 40.2% of GRI and 25.3% of NRA.
CRR 405: Citibank N.A. London Branch and Morgan Stanley Bank N.A., as originators, will retain a material net economic interest of not less than 5% in the securitisation in accordance with the text of each of Article 405(1) of the Capital Requirements Regulation, Article 51(1) of the AIFM Regulation and Article 254(2) of the Solvency II Regulation. As at the Closing Date such interest will be comprised of the VRR Loan Interest, which has a nominal value equal to at least 5% of the aggregate Principal Amount Outstanding of the Notes of all Classes.
US Risk Retention: Will be subject to the credit risk retention requirements of Section 15G of the Securities Exchange Act of 1934. Citibank N.A. London Branch will act as the "retaining sponsor”. The Retaining Sponsor is expected to acquire on the Closing Date a "single vertical security" in the Issuer, with an aggregate balance of approximately €27,942,105.26 as of the Closing Date in the form of the VRR Loan.
Compare/contrast: Midgaard Finance Ltd, Taurus 2017-2 UK S.R.L