Bank of America Merrill Lynch is marketing 286 million ($331 million) of securities backed by three commercial mortgages on 14 office and retail centers located in Italy.
The three loans Calvino Loan, Globe Loan and Fashion District Loan have an aggregate balance of 301.5 million, according to a DBRS presale report.
The Globe loan has a five-year term and refinanced existing debt tied to three Orion Capital Managers owned shopping centers, located in Northern Italy. All three centers are anchored by the superstore, Unicomm S.R.L. The loan has a loan to value ratio (LTV) of 70.1%
The Calvino loan, also structured with a five year term, financed Cerebus Capital Management’s acquisition of a portfolio of five office and four telecom properties. The properties are located in Northern Italy and Rome. Of the nine properties, three are multi-tenant office buildings, two are single-tenant office headquarters and four serve as telephone exchange facilities. The loan has an LTV of 108.5%
The Fashion District, another five-year loan, financed Blackstone Group’s acquisition of two fashion outlet villages, Mantova Fashion District and Molfetta Fashion District, which are respectively located in Northern and Southern Italy. The acquisition of these assets represents the tenth and eleventh investment in retail centers in Italy by Blackstone. The loan has an LTV of 88.4%
DBRS plans to assign A’ ratings to both the 206 million of class A notes with credit enhancement at 28.07% and the 23 million of class B notes with credit enhancement at 20.04%. The class C notes which have credit enhancement at 8.08% will be rated BBB’ and the class D note will be rated BB’.