Deutsche Bank Selling Europe’s First Multi-Loan CMBS Since 2007Alastair Marsh
Deutsche Bank AG is selling the first bonds backed by multiple loans to commercial landlords in Europe since the financial crisis as the market for the debt recovers from a property crash that triggered a wave of defaults.
The German bank is offering 355 million euros ($484 million) of commercial mortgage-backed securities backed by three loans linked to properties in Italy, according to a person familiar with the matter. They are the first widely-distributed notes secured by multiple loans since December 2007, according to data compiled by JPMorgan Chase & Co.
The deal is “another step in the direction of re-opening the market fully,” said Gareth Davies, JPMorgan’s London-based head of European asset-backed securities research. “The return of a multi-loan deal is something different for investors.”
Deutsche Bank is marketing the notes as Europe’s 100 billion-euro CMBS market re-emerges from a collapse in real estate values that left thousands of properties worth less than their outstanding debt. The global financial crisis halted sales of multiple-loan CMBS in Europe with banks preferring simpler transactions using single loans or German residential properties as collateral.
Sebastian Howell, a spokesman for Deutsche Bank in London, declined to comment on the offering.
Lenders sold more than 4 billion euros of asset-backed securities last week, the most in three years, according to data compiled by Rabobank. The European Central Bank said on June 5 it’s preparing plans to buy the debt to boost lending in the region.
DECO-2014 Gondola is backed by 17 properties in northern Italy and one in Rome, said the person, who asked not to be identified because the sale is private. The deal is expected to close within the next month.