Morgan Stanley has launched a €373.4 mln securitisation of a loan secured on 49 Blackstone-Mileway properties valued at €600 mln in The Netherlands and Germany.
The CMBS is the fourth in Europe this year, following three sales and launches all from Bank of America Merrill Lynch.
Last Mile Securities - PE 2021 will refinance a five-year senior loan made by Morgan Stanley which has an outstanding balance of €383.5 mln. There is a further €95.6 mln of mezzanine debt secured on the industrial and urban logistics assets.
According to a pre-sale report from Kroll Bond Rating Agency (KBRA), the issuance is structured in seven tranches, with an LTV of 67.3% based on the portfolio valuation of €603.2 mln.
The portfolio is split almost 50-50 between the Netherlands and Germany. As of November 2021 occupancy was 91.2% with a total of 450 tenants in 38 towns and cities. The weighted average lease to break is 3.2 years and nearly all the properties are over 20 years-old, with half built prior to 1982.
BAML’s first European CMBS of the year was also of a loan secured on Mileway properties, in the UK. The £340 mln deal attracted heavy bidding from structured finance investors and priced at the new Sonia benchmark + 85 basis points for the triple A rated class A notes, up to Sonia +365 bps for the class Es.
BAML’s second launch was a €132.9 mln transaction secured on a secondary office portfolio in Madrid owned by Starwood Capital which was pre-placed, pricing at 150 basis points over euribor for the class A notes up to 475 bps for the highest leverage class Es. The most recent, launched on 15 March, is secured on The Squaire office complex at Frankfurt airport.
If all the deals successfully price, it will take CMBS issuance this year to €1.38 bn.
