DECO (26) Series 2019-Vivaldi: 08 June 2019
The principal source of payment of interest on the notes, and of repayment of principal on the notes, will be the collections and recoveries made in respect of monetary claims and connected rights arising out of the Securitised Loans. On the date of the Loan Portfolio Sale Agreement, the Issuer will acquire a loan portfolio from Deutsche Bank AG London Branch, as loan transferor, comprising of: (i) an approximately 95% interest (equal to €63,350,000) of the principal amount advanced under the €66,690,000 Facilities Agreement to be entered into by (among others) the Palmanova Borrower; and (ii) an approximately 95% interest (equal to €158,880,000) of the principal amount advanced under the €167,245,000 Facilities Agreement to be entered into by (among others) the Franciacorta Borrowers.
The Palamanova Borrower is Palmanova Propco S.r.l., a limited liability company incorporated under the laws of Italy. The asset, Palmanova Outlet Village, is a 22,204 sqm outlet scheme located in North Eastern Italy. The total gross rental income is €7,205,287 and the occupancy as of 31 December 2018 is 93.9%. The Palmanova Property provides 92 retail units and there are 83 tenants in place. The tenant base is diversified and largely made up of widely-recognised national and some international retailers.
The Franciacorta Borrowers are (i) Franciacorta Retail S.r.l. (formerly DEGI Franciacorta S.r.l.), a limited liability company incorporated under the laws of Italy and (ii) Frankie Retail Holdco S.r.l., a limited liability company incorporated on 14 March 2019 under the laws of Italy. The Franciacorta Outlet Village is a 36,803 sqm outlet scheme located in Northern Italy. The total gross rental income is €14,653,577 and the occupancy as of 31 December 2018 is 90.9%. This includes Phase 3 (4,586 sqm / 32 units) which opened in October 2018. Excluding Phase 3, which has an occupancy of 51%, the centre has an occupancy of 96.5%. The Franciacorta Property tenant base is composed of widely recognised regional and international brands.
EU Risk Retention: Deutsche Bank AG London Branch, as original lender in respect of the Loans, will retain a material net economic interest in the securitisation of not less than 5% in accordance with the text of Article 6(1) of Regulation (EU) 2017/2402. As at the Issue Date, such retained material net economic interest will comprise the retention of 5% of the principal amount advanced under each Facilities Agreement in accordance with the EU Risk Retention Requirement, in the form of the Retained Loans.
Compare/contrast: Italy Office 2017, Pietra Nera Uno SRL, Taurus 2018-1 IT S.r.l.