Goldman Sachs has launched a €295.3 mln securitisation of loans to two borrowers, secured on 29 European offices.
The CMBS is the fifth in Europe this year, following three sales from Bank of America Merrill Lynch, and one from Morgan Stanley, and will take issuance in 2021 to over €1.7 bn.
BERG Finance 2021 will refinance the ‘Sirocco’ loan which Goldman originated this month for borrower Ares, and the ‘Big Mountain’ loan originated in March 2021 for sponsor Fortress Investment.
According to a pre-sale report from Kroll Bond Rating Agency (KBRA), the issuance is structured in five tranches, with an LTV of 61.6% based on a valuation of the assets of €485.9 mln.
The Sirocco loan, which has a principal balance of €150.8 mln and a margin of 375 basis points over Euribor, is secured on four office buildings in Vienna, Rotterdam, Helsinki and Ratingen in Germany. The largest asset is Peak Vienna, a 31-storey, 39,532 m2 tower in the north of the city which is 79% occupied.
The others are Las Palmas in Rotterdam, Duetto in Helsinki and the Goldback Office Park in Ratingen, near Düsseldorf. Ares acquired the properties for the Ares European Real Estate Fund V.
The Big Mountain assets are more granular, involving 24 mainly multi-let offices and an industrial asset, in The Netherlands and France.
The loan has a principal balance of €125.8 mln and an undrawn commitment of €22.5 mln. The cost is Euribor plus 3.13% for years 1-2 and plus 3.38% for years 3-4.
Before BERG, the most recent CMBS was Morgan Stanley’s Last Mile Securities - PE 2021 which will securitise 49 Blackstone-Mileway properties valued at €600 mln in The Netherlands and Germany.
The three BAML CMBS were: a £340 mln portfolio of logistics in the UK where Mileway is also the sponsor; a €132.9 mln transaction secured on a secondary office portfolio in Madrid owned by Starwood Capital which was pre-placed; and securitisation of the loan secured on The Squaire office complex at Frankfurt Airport, which was upsized to €513 mln.
