K-REIT, the real estate investment trust established by Singaporean developer Keppel Land, has priced its debut CMBS. Deutsche Bank was sole lead manager on the 97 million ($124.1 million) transaction, issued out of the Blossom Assets SPV.
The deal is backed by cashflows generated by three office buildings located in Singapore's central business district. According to S&P, the assets have a debt service coverage ratio of 2.1 times. In the event K-REIT fails to meet its obligations to CMBS investors, the SPV can seize ownership of the properties.
The 82 million senior notes, rated triple-A by Moody's and S&P with an expected bullet maturity of five years, priced at 20 basis points over Euribor. The 15 million junior tranche, rated Aa3/AA, offered a 35 basis point spread.
Allocations were being finalized as of press time, with interest coming mainly from European investors.
Also in Singapore, the state-investment company Temasek has been linked with securitizing part of its private equity portfolio. Temasek, which owns substantial holdings in several leading Singaporean and international companies, is believed to have sounded out investment banks to pitch on a range of options, including an ABS deal. No details have emerged on what assets would be included in the sale.
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