Deutsche Bank plans to issue a 355 million ($482.4 million) of bonds backed by three commercial mortgages secured by Italian properties, according to person familiar with the deal.
The deal, dubbed DECO-2014 Gondola, is the first multi-loan European CMBS since 2007.
Deutsche Bank is lead manager and sole bookrunner on the deal. The deal is expected to be rated by both Fitch Ratings and DBRS. The notes are structured with a weighted average life of four years. Deutsche Bank will retain on an ongoing basis a material net economic interest of at least 5% of each class of notes.
The loans, which have original five-year terms and a loan to value ratio of 60.5%, are secured by 18 mixed-use Italian properties.
European CMBS investor-placed issuance for the year to date is at 133 million, down from 2.4 billion in the same period of 2013, according to a report published today by Standard & Poor's. Much of the issuance last year was led by the refinancing of a few large legacy German multifamily transactions. For example, the 2 billion German Residential Funding 2013-1 PLC and the 1.1 billion Taurus CMBS 2013 (GMF 1) transactions together accounted for nearly 40% of 2013 issuance.