ING Office Fund has launched the first commercial mortgage-backed securitization of the year, and it is the first CMBS deal in the Australian market to carry no terrorist insurance on the underlying real estate.

The A$408 million deal (U.S.$206.7 million), arranged and lead-managed by Westpac Institutional Bank with JP Morgan as co-manager, is offering Class A notes rated AAA by Standard & Poor's with a scheduled maturity of February 8, 2007, and final maturity of August 18, 2008. According to S&P the risk to investors posed by the absence of terrorism insurance - carved out of most commercial property insurance contracts since the Sept. 11 outrage - has been sufficiently mitigated within the structure by portfolio diversification and other factors.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.