Westfield looks at CMBS loan for London mall: reports

Australian mall giant Westfield is considering a £550 mln (€680 mln) commercial mortgage backed security (CMBS) loan secured against its shopping centre in Stratford, East London, according to media reports.

The firm is believed to be in talks with Deutsche Bank and Crédit Agricole about what would be the first large UK CMBS for more than six months.

Quoting a ‘source with knowledge of the discussions,’ website realestatecapital.co.uk claimed the CMBS could refinance a £550m loan from 2011 to lower the cost of that debt.

Last year saw more than €8 bn of CMBS deals in Europe as the products, which were discredited in the 2007/08 crisis, came back into favour.

Westfield declined to comment on the report.