Goldman Sachs has launched another CMBS transaction, taking the volume of European securitisation this year to almost €2 bn.
Bruegel 2021 DAC is, as its name suggests, a securitisation of a loan secured on Dutch assets.
The seven offices, one office/hotel tower, and a supermarket are largely concentrated in the Randstad region and are owned by Czech investment fund PPF Group and managed by Knight Frank affiliate NL Asset Management.
The €220.15 mln deal will refinance the same loan which was previously securitised three years ago as Kantoor Finance 2018.
The Goldman Sachs loan matures in August 2024 and carries a 2.3% margin over 3M Euribor. Bruegel 2021’s loan to value is 55.7% and there are four tranches.
Rating agency DBRS Morningstar said the assets had been improved since the last financing, notably by €25 mln of capex investment and fully letting Hofplein 19 in Rotterdam, which was vacant in 2018.
Rotterdam has the highest concentration with three assets and 51.4% of exposure by value. Millennium Tower, the largest asset in the portfolio, is located directly in front of Rotterdam Central Station. Amsterdam, together with its suburb Hoofddorp, has the second-largest exposure in terms of value (28.4%).
DBRS says the portfolio registered a high collection rate on the invoiced amount, of 96.5%. However, rent reductions were offered to the retail tenant, Jumbo, and B3, the tenant of the Marriott Tower Hotel in MillenniumTower. Some tenants were offered rent deferrals during the Covid pandemic. PPF is to acquire the hotel tenant.
Bruegel is the sixth CMBS in Europe this year, following three sales from Bank of America Merrill Lynch, one from Morgan Stanley and another from Goldman and it will take issuance in 2021 to almost €2 bn.
In April, Goldman issued BERG Finance 2021 to refinance the ‘Sirocco’ loan which the bank originated that month for borrower Ares, and the ‘Big Mountain’ loan originated in March 2021 for Fortress Investment.
