Kantoor Finance 2018 CMBS: 13 July 2018
The principal source of payment of interest on the Notes and of repayment of principal on the Notes will be a 95% share of interest, principal and prepayment fee amounts arising out of (i) the €73,257,278 facility agreement entered into with, among others, the Iron Borrower on 29 September 2017 and (ii) the €184,970,930 loan advanced pursuant to a facility agreement entered into with, among others, the PPF Borrowers on 17 April 2018. The loan seller is Goldman Sachs Bank USA.
The collateral for the Iron portfolio comprises of 9 office assets located in the Netherlands, all located in the Randstad area. The portfolio has 57,692 sqm of net lettable area with an overall occupancy rate of approximately 85.7% and a NOI yield of c.8.1%. CBRE have valued the Properties on a RICS basis at Eur88.420mln in two separate valuations, as at 18 August 2017 and 22/23 January 2018.
The collateral for the PPF portfolio comprises of 7 office assets, 1 office/hotel asset and 1 retail asset located in the Netherlands, with a concentration in the Randstad area. The portfolio has 159,347 sqm of net lettable area with an overall occupancy rate of approximately 78.3% and a NOI yield of c.6.4%. CBRE have valued the Properties on a RICS basis at Eur302.985mln.
EU Risk Retention: Goldman Sachs Bank USA, as original lender, will retain a material net economic interest in the securitisation of not less than 5% in each of the tranches sold or transferred to investors in accordance with the text of each of: (a) Article 405(1)(a) of Regulation (EU) No 575/2013; (b) Article 51(1)(a) of Regulation (EU) No 231/2013; and (c) Article 254(2)(a) of Regulation (EU) 2015/35. As at the Closing Date, such retained material net economic interest will comprise the Issuer Loan, the initial principal amount of which will equal at least 5% of the aggregate of (i) the principal amount of the Issuer Loan and (ii) the Principal Amount Outstanding of each Class of Notes, in each case in accordance with the EU Risk Retention Rules.
US Risk Retention: This securitisation is required to comply with Section 15G of the U.S. Securities Exchange Act of 1934. Goldman Sachs Bank USA, as sponsor, is required to retain an economic interest in the "credit risk" of the "securitized assets" of not less than 5% under the U.S. Risk Retention Rules. Goldman Sachs Bank USA intends to satisfy the U.S. Risk Retention Rules by acquiring on the Issue Date and retaining an eligible vertical interest in the form of a single vertical security, in each case as defined under the U.S. Risk Retention Rules. The EVI will comprise of 100% of the Issuer Loan.
Compare/contrast: Dutch Property Finance 2017-1