Deutsche Bank plans to issue 316 million ($346 million) of securities backed by three commercial mortgage loans that are secured by 37 office, retail and hotel properties located in Germany, the Netherlands and Belgium.
Deutsche Bank originated the loans between September 2014 and April 2015. The largest, the Windmill loan, equates to 56.0% of the pool by loan balance. It refinances a portfolio of nine assets securitized in DECO 2014-Tulip) and funds the acquisition of one further asset.
The properties backing the Windmill loan are located across the Netherlands' major cities. It matures in April 2020, has a loan to value ratio of 65%.PPF Real Estate Holding B.V., part of PPF Group N.V., one of the largest investment groups in Central and Eastern Europe, sponsors the loan.
The two other loans, the MStar loan and the Pegasus loan, are of roughly equal size at 26.5% and 17.5% of the pool, respectively.
Deutsche Bank arranged and underwrote the 86.5 million, five-year MStar loan at a 64.3% LTV ratio. It funded the acquisition of a portfolio of 19 logistics assets located across Germany and the Netherlands. MStar loan's sponsor is MStar Europe L.P., a joint venture between Starwood Capital Group and M7 Real Estate Ltd.
The 55.9 million Pegasus loan was underwritten by Deutsche Bank at a 61.3% LTV ratio. If funded the acquisition of eight office buildings in a business park (Pegasus Park) located in Diegem, in the airport submarket of Brussels. The loans sponsor is Ares Investments Holdings LLC, acting on behalf of Ares European Real Estate Fund IV, L.P. Ares Management L.P
Combined, the loans in the pool have a weighted average LTV of 64.2%.
Standard & Poor’s assigned preliminary AAA’ ratings to 188.25 million of class A notes; AA’ ratings to 46.7 million of class B notes; A+’ ratings to 30 million of class C notes; BBB+’ ratings to 39 million of class D notes; and “BBB-’ ratings to 12 million of class E notes . The notes all have an expected final maturity of April 2020.