Emerald Italy 2019 S.R.L.: 10 November 2019

This is the securitisation of a loan to an Italian borrower sponsored by Kildare Partners. The Loan comprises of a "Term Facility Loan" and a "Capex Facility Loan", each granted under the €105,794,000 facility agreement entered into by, among others, J.P. Morgan Chase Bank, National Association, Milan Branch (the Loan Seller) and the Borrower on 30 July 2019 and secured over the Metropoli Retail Mall, the Rondinelle Retail Mall and the Settimo Shopping Centre.

The Property Portfolio has a total gross lettable area of 39,934 sqm, 92% let on 168 leases. The assets generate a total rental income of €14.2m (€389 psqm). Passing NOI is €13.2m (1), current vacancy is c.8% and the residual WAULT to break is 3.1 years as at 30th April 2019. Top 10 tenants make up 42% of the GLA and 30% of the income. Anchor tenants are OVS (8%), Unieuro (4%) and Coop (4%). The Portfolio’s Market Value as appraised by Cushman and Wakefield is €161.4m.

EU Risk Retention: J.P. Morgan Securities plc or its Affiliate, as originator in respect of the Loan, 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 Class R Notes, which will equal not less than 5% of the aggregate nominal value of all Classes of Notes sold or transferred to investors on the Issue Date as required by the text of Article 6(3)(a) of the Securitisation Regulation.

US Risk Retention: The Retaining Sponsor (J.P. Morgan Securities plc) intends to satisfy the U.S. Credit Risk Retention Rules by acquiring on the Issue Date and retaining an eligible vertical interest in the form of a single vertical security that entitles its holder to no less than 5% of amounts payable under the Notes. The EVI will comprise 100% of the Class R Notes. The Class R Notes, for economic purposes, will comprise Retention Tranche A, Retention Tranche X CP, Retention Tranche X NCP, Retention Tranche B, Retention Tranche C and Retention Tranche D. The Principal Amount Outstanding of each Retention Tranche will be equal at least to 5% of the Principal Amount Outstanding of the relevant Retention Tranche and the corresponding Class of Notes.

Compare/contrast: DECO (26) Series 2019-Vivaldi