Two deals are making the rounds in Canada, supporting the view that 2004 will be another record year for the sector.
Schooner Trust Series 2004-CCF1 is kicking off the first Canadian CMBS transaction in 2004, and the fifth transaction for Solar/Schooner, according to offering documents.
With a principal amount of $474 million, this is one of the largest transactions done in the Canadian CMBS market.
Meanwhile, Falcon Trust announced the upcoming issuance of the Series 2003-SMU, which will be its second securitization deal after the successful issuance last year of the Series 2002-SMU.
Schooner is comprised of 75 loans on 78 properties. Commercial Mortgage Origination Co. of Canada - a subsidiary of the TD Bank - provides 52 loans or 58.2% of the pool; Commercial Mortgage Origination Company of Canada. - a subsidiary of Credit Suisse Group - 17 loans or 35.9% of the pool; and First National Financial Corp., 6 loans or 5.9% of the pool.
The tranches A-1, A-2, B and D-1 will be offered to institutions while the tranche C will be sold to retail investors. The triple-A tranches have the typical structure of a Canadian conduit with the A-1 being an 8.9-year with an average life of five years while the A-2 is a 9.8-year quasi-bullet.
As for Falcon, that deal is comprised of 45 loans from the industrial sector. The sponsor of the Trust, Summit REIT, is the only industrial-focused REIT in Canada. A triple-A tranche worth $125.6 million is offered with a 6.9-year maturity and a 6.8-year average life.
Unique to Falcon deals, the end borrower, which is Summit REIT, is also the owner of the properties.
The loans are concentrated in three provinces: Ontario (44%), Alberta (41%) and Quebec (14%). The properties are all in major urban areas: Toronto, Calgary, Edmonton and Montreal.