Bank of America Merrill Lynch has underwritten a €229.9 million securitization of a collection of mostly office properties in Germany.

Taurus 2016-2 Deu DAC has a five-class notes structure, including a triple-A provisionally rated €140 million tranche at the top of the capital stack, according to Moody’s Investors Service report issued Thursday out of its London office.

The transaction also include €37 million in Class B notes rated ‘Aa3’;  €27.2 million in Class C notes rated ‘A3’; and $25.64 million in Class D notes rated ‘Baa3.’

Moody’s is not rating an interest-only notes class of undetermined size.  

The commercial mortgage backed securitization is backed by a single loan originated by BAML as a refinancing to an existing debt vehicle. The loan itself is secured by 178 German office properties of median collateral quality. The sponsor is Dream Global Real Estate Investment Trust.

BAML will retain 5% of the loan, but will have no voting rights under the loan agreement nor input into potential waivers or amendments, according to Moody’s.

In its report, Moody’s cited challenges to the pool including the increased refinancing risk due to a short-weighted average unexpired lease term and a lack of amortization on the loan.

The pool is also exposed to a high tenant concentration, with the largest tenant accounting for 72% of total gross rental income of the properties, which themselves also expose management to potentially high maintenance costs due to the average property age of 55 years.   

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