Goldman Sachs International Bank and Societe General priced Italy’s first post-crisis CMBS backed by a loan secured on Italian retail properties, according to market reports.
The deal, Gallerie 2013, was assigned preliminary ratings by Fitch Ratings. It is structured with 4 tranches: the 271 million class A notes are rated A’; the 50 million class B notes are rated A-’, and the 42 million class C notes are rated BBB-’.
The 5-year, class A notes priced at 225 basis points over the three month Euribor, the class B notes priced at 325 basis points over the three month Euribor, and the class C notes priced at 455basis points over the three month Euribor according to a Bloomberg report. The issuer pre-placed about 50% of the B and C tranches when the deal was announced in the third week of Nov.
The deal is backed by 13 shopping centers and 2 retail parks spread across Italy.
Investor-placed European CMBS issuance is currently 8.2 billion—more than 3x issuance in 2012, according to figures reported by Standard & Poor’s today.
