Peverel Properties, the U.K. sheltered housing builders, recently launched a GBP103 million ($164 million) securitization, backed by property ground rents on Peverel's portfolio of 25,000 sheltered housing flats and 12,600 ordinary properties. The deal - called Peverel Properties - was arranged by Merrill Lynch and is believed to be the first ground rent deal issued from the U.K.

The transaction was split into two tranches: a GBP100 million senior tranche rated AAA by both Standard & Poor's and Duff & Phelps Credit Rating Co., and GBP3 million of B class notes rated BBB by the agencies. The 29.4-year average life senior notes priced at 180 basis points over the 2028 Gilt, while the spread on B notes was 300 over.

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