Hypo Real Estate Bank International has closed its first true sale commercial mortgage-backed securities transaction with the
securitisation of a single loan of €246.5m.
The loan, which was provided by Hypo in
December 2004, went to a consortium of borrowers controlled by Eurocastle Investment Limited.
The loan was used to finance the consortium’s acquisition of a well diversified portfolio of 109 properties located in 90 different cities in Germany, from Deutsche Bank.
The loan, which has a maturity of eight years,
features an 85.75% loan to value and interest
coverage of 2.08x at the closing of the loan. It
contains a full security package and a set of
individually tailored financial and loan-to-value
The issuer,Valesco Funding, has issued eight classes of notes ranging in rating from AAA/AAA to BBB/BBB- (S&P/Fitch) into the capital market, using the proceeds to purchase the loan from Hypo Real Estate Bank International. The notes are listed on the Irish Stock Exchange.
Lehman Brothers acted as lead manager and sole bookrunner, placing the notes with a “wide range” of investors, said Hypo.