June 17 (Bloomberg) -- Bank of America Corp. is selling 211.5 million pounds ($358.8 million) of bonds backed by commercial properties in the U.K.
The notes will be the third commercial mortgage-backed securities sold in Europe this year, according to data compiled by Bloomberg. The debt is secured by a loan made by Bank of America to Apollo Global Management LLC for the purchase of secondary quality properties, according to Matthias Baltes, head of commercial real estate financing at Bank of America in London.
Commercial mortgage bond sales slumped to 133 million euros ($180 million) in Europe this year, the least since the same period of 2008 and a fraction of the 6 billion euros issued in the first six months of last year, according to JPMorgan Chase & Co. The deal is unusual because the debt is linked to 132 properties rather than to a single trophy asset, Baltes said in a telephone interview.
“There haven’t been tonnes of deals done and one of the reasons is that to find the right fit as far as collateral is concerned is not that easy,” Baltes said.
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