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Taurus 2018-3 DEU DAC: 23 December 2018

A commercial mortgage securitisation where the issuer will make payments on the notes from payments of principal and interest received by the issuer under a loan advanced by the loan seller. On the closing date, the issuer will acquire approx. 95.0% interest in each of the loans. The loans will de secured by two commercial properties (The Squaire) located at Frankfurt-am-Main airport, and their related parking lots.

The properties comprise of a nine-story building complex constructed on the roof structure of the mainline railway station immediately adjoining Frankfurt Airport. The building is multi-functional, comprising hotel, office, retail, and restaurant space, as well as public areas. As per September 2018, the properties generated Eur48m of gross contracted income, with an occupancy rate of 93.0%. As at 11 October 2018 the properties were valued by CBRE in the initial valuation at Eur747.43mln.

EU Risk Retention: Bank of America Merrill Lynch Int’l, as original lender, will retain a material net economic interest of not less than 5% in the securitisation in accordance with the various regulations. As at the closing date such interest will be held in the form of a pari passu interest of not less than 5% of the nominal value of the loans.

US Risk Retention: The transaction does not intend to retain (as a sponsor) 5% of the credit risk, but rather intends to rely on an exemption provided for in Section 20 of the US Risk Retention rules regarding non-US transactions.

Compare/contrast: Taurus 2016-2 DEU DAC, Arrow CMBS 2018, European Loan Conduit No. 31 (Libra)