Seven Sears Stores in Properties Backing CMBS, RBS Says

Published December 30, 2011, 2:06 p.m. EST

Updated January 04, 2012, 7:41 a.m. EST

1 Min Read

Sears Holdings Corp. announced on Dec. 27 that it is closing up to 120 Kmart & Sears full-line stores.

Royal Bank of Scotland (RBS) analysts, in a report released today, said that seven are tenants in properties that are backing CMBS loans.

The retail company subsequently provided an update where it identified 79 of the stores to close. Standard & Poor's early this morning published the list, please see link.

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According to RBS. the largest CMBS exposure is in GMAC 2004-C2 via the $55.1 million loan to the Military Circle Mall. RBS said that this mortgage makes up 8% of the total transaction balance.

Sears leases 17% of the GLA (128,328 square feet) of the property and thus backs 1.3% of the total CMBS offering's balance, RBS analysts stated in the report.

Yesterday Fitch Ratings said there is little risk of a negative impact on CMBS from the closure of 100 to 120 Sears and Kmart stores. For the full StructuredFinanceNews.com story on the report, please click here.

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