Japanese property developer Sumitomo Realty and Development plans to launch its first commercial mortgage securitization next month, in what is being called the first CMBS to be publicly offered in Japan.

The 24 billion ($195 million) transaction, arranged by Daiwa Securities SB Capital Markets and rated by Moody's Investors Service, is backed by the income from five office buildings owned by the developer. Those buildings will be entrusted to Sumitomo Trust Bank in exchange for trust certificates, which will be sold to an SPC called Sumquest that will issue securities backed by the certificates to investors.

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