Goldman Sachs launches €198m Italian CMBS

Goldman Sachs International (GSI) has launched a CMBS structure in Italy underpinned by retail assets acquired in the country by US private equity giant Blackstone.

The €198 mln Moda 2014 SRL securitisation consists of two loans extended to Blackstone and secured by three shopping centres and two outlet villages in northern and central Italy.

The Franc and Vanguard loans were granted by Goldman Sachs International for Blackstone's acquisition of five retail assets including the Franciacorta and the Valdichiana outlet villages as well as La Scaglia shopping centre in Italy from Aberdeen Asset Management.

The transaction features a seven-year tail period between loan scheduled maturity (2019) and legal final maturity of the notes (2026).

GSI’s five-year Moda CMBS comprises five tranches of notes; Class A: €145 mln (LTV 45.4%), Class B: €14.6 mln (LTV 50%), Class C: €17.7 mln (LTV 55.6%), Class D: €3.8 mln (LTV 56.7%) and Class E: €17 mln (LTV 62.1%)

Second securitisation in Europe
This is GSI’s second securitisation in Europe since the global financial crisis and follows the launch in November 2013 of the Galerie 2013 CMBS, backed by a portfolio of secondary retail assets leased to Auchan.

The €363 mln triple-tranche securitisation had a weighted average coupon of 2.75%. Gallerie is the securitisation of a five-year senior loan by Goldman Sachs International, which was priced at 525 basis points over three-month Euribor for a 60% LTV. The financing was used to fund Morgan Stanley’s acquisition of a portfolio of mainly secondary retail assets leased to Auchan with a 10-year average lease term.

The pricing for the three-tranche Gallerie securitisation was 225 bps over Euribor for the tranche of up to 43% LTV, 325 bps for the second tranche up to 51% LTV and 455 bps for the Class C notes of up to 58% LTV, representing a weighted average blended margin of 275 bps.

Another CMBS loan is in the making
Later this month, Deutsche Bank is also expected to sell €355 mln of Italian commercial mortgage-backed securities. The Deco 2014 Gondola CMBS notes are backed by three loans linked to 18 properties in northern Italy and one in Rome, according to well-informed market sources.

The assets provide a lettable area of 680,000 m2 with an occupancy rate of 94% and an average remaining lease term of four years. Logistics assets make up 40% of the package with offices and retail each accounting for a 30% share.

Deutsche Bank is understood to be looking to retain 5% of all note classes.