GAGFAH S.A., sponsor of several German multifamily loans securitized in European CMBS,  intends to buy back as much as €125 million ($167.5 million) in shares.

According to Barclays Capital analysts, the buyback would amount to around 20 thousand shares or 9% of the outstanding.  

Earlier this year, GAGFAH reduced its quarterly dividend in light of upcoming debt refinancing.

The current outstanding securitized balance of GAGFAH associated loans in European CMBS, according to Barclays analysts, has reached around €4.2 billion, split over five transactions.

However, the real problems are still ahead. Barclays analysts estimated that between 2013 and 2014, approximately €12.2 billion of securitized German multifamily loans, including the GAGFAH sponsored loans, will need to be repaid.

"Unless the lending market and potentially the European CMBS market recover marketable, there will be difficulties absorbing this volume," Barclays analysts said. "Hence, our general assumption remains that loans will need to be extended.

Under the GAGFAH loans, the CMBS notes’ final maturities are mostly in 2018 and 2020. This allows for some flexibility for servicers to extend loans without prolonging the bond maturity.  

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