Goldman Sachs International priced a 200 million ($270 million) Italian commercial mortgage securitization dubbed Moda 2014 that is backed by two loans that are secured on retail outlets and shopping centres.
DBRS and Fitch Ratings assigned preliminary ratings to the deal. The capital structure features 145 million of single-A rated 4.7-year, class A notes, that priced at 148 basis points over three month euribor and 14.6 million of single-A rated, 4.7-year, class B notes that priced at 190 basis points over three month Euribor, according to Standard & Poor’s.
Further down the capital structure, 17.7 million of 4.7-year, class C notes rated BBB’ priced at 255 basis points over three month Euribor; the 5-year, BBB’ rated class D notes priced at 330 basis points over three month Euribor; and the 5.8-year, BB’ rated class E notes priced at 410 basis points over three month Euribor.
The deal is backed by two loans extended to Blackstone.The Franciacorta Loan is secured by a single outlet shopping village located in Brescia, Italy. The property contains 152 retail units, as well as restaurants and other ancillary services within 32,657 square meters (sq. m.) of leasable area. The property was 98.4% occupied as of 25 March 2014.
The Vanguard Loan is secured by one outlet, shopping village and three shopping centers located throughout Italy. By value, 71.59% of the collateral lies in Northern Italy and 28.41% lies in Southern Italy. Combined, these properties comprise 69,539 square meters of leasable area and contain 251 retail units, as well as a number of restaurants and other ancillary services. The weighted-average occupancy for the properties as of 31 March 2014 was 93.8%.
This is Goldman Sachs International's second securitization in Europe since the global financial crisis, and second backed by Italian collateral.
The first deal, Gallerie 2013, backed by a loan secured on Italian retail properties, was issued in December 2013. The five-year, single-A rated, class A notes on that deal priced at 225 basis points over three-month Euribor.