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Kroll Bond Ratings Affirms Ratings on All Classes of GSMS 2012-SHOP

  Kroll Bond Ratings Affirms Ratings on All Classes of GSMS 2012-SHOP

GSMS 2012-SHOP Surveillance Report

Business Wire

NEW YORK -- September 10, 2013

Kroll Bond Rating Agency (KBRA) affirmed its ratings on all six classes of
GSMS 2012-SHOP certificates, a $625.0 million Single-Borrower CMBS Transaction
(see ratings list below). The transaction collateral is a single,
non-recourse, first lien mortgage loan secured by the fee simple and leasehold
interests in 815,587 sf of two interconnected specialty retail centers, The
Grand Canal Shoppes and The Shoppes at The Palazzo, located along Las Vegas
Boulevard South, also known as the “Strip,” in Las Vegas, Nevada. The Grand
Canal Shoppes consist of 499,247 sf and The Shoppes at The Palazzo consist of
316,340 sf. The Grand Canal Shoppes are located within the Venetian Resort
Hotel Casino and The Shoppes at The Palazzo are located in the Palazzo Resort
Hotel Casino, both of which are operated by Las Vegas Sands Corporation (LVS).

For the trailing twelve months (TTM) ending March 2013, in-line tenants
occupying less than 10,000 sf generated sales of $1,006 per sf, up 2.1% from
$986 per sf at securitization. The current sales performance is more than
double the International Council of Shopping Centers (ICSC) average national
mall sales, which were $460 per sf as of June 2013, and 81.3% above the ICSC
US West region sales, which were $555 per sf as of June 2013. The property
also exhibited strong performance in the midst of the economic crisis, having
generated sales of $892 per sf in 2009.

KBRA used information obtained from the trustee, U.S. Bank National
Association, and servicer, Wells Fargo Bank, National Association, to analyze
the loan collateral. The analysis produced a KBRA Net Cash Flow (KNCF) of
$69.1 million and a KBRA value of $952.6 million, both of which have improved
1.2% since issuance. The resulting in-trust KBRA Loan to Value (KLTV) was
65.6%.

                                        
Class     Rating       Balance (USD)     Rating Action
A         AAA (sf)     478,000,000       Affirmed
X-A       AAA (sf)     478,000,000*      Affirmed
X-B       AAA (sf)     147,000,000*      Affirmed
B         AA- (sf)     76,600,000        Affirmed
C         A (sf)       53,050,000        Affirmed
D         A- (sf)      17,350,000        Affirmed

^* Notional Amount

Related Publications (available at https://www.krollbondratings.com):

GSMS 2012-SHOP Certificate Ratings Under Review
GSMS 2012-SHOP Presale Report
CMBS Property Evaluation Guidelines
CMBS Single Borrower and Large Loan Rating Methodology

Contact:

Analytical:
Kroll Bond Rating Agency
Allison Werry, 646-731-2335
awerry@krollbondratings.com
or
Jereme Koons, 646-731-2306
jkoons@krollbondratings.com
or
Bill Petersen, 917-213-2128
wpetersen@krollbondratings.com
or
Sarah Woo, 646-731-2361
swoo@krollbondratings.com
 
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