Venn Partners plans to issue its first Dutch residential mortgage-backed securitization, according to a presale report published by Standard & Poor's.
The 481.3 million ($658 million) deal, dubbed Cartesian Residential Mortgages 1, is backed by by loans that Venn recently acquired from GE Artesia Bank, a unit of GE Capital International.
S&P has assigned preliminary credit ratings to the floating-rate class A, B, and C notes that range from AAA’ to A+’. At closing, the trust will also issue unrated class D, E, and S notes.
The loans were all originated by Quion 10 B.V., Ember Hypotheken 1 B.V. and Ember Hypotheken 2 B.V., which where previously owned by GE Artesia Bank.
GE Artesia Bank announced this week that it sold a 500 million portfolio of Dutch residential mortgages to Venn, a specialist credit advisory and investment manager that has been looking to access the Dutch RMBS market. According to a Reuters report, Venn Partners’s new mortgage lending platform in the Netherlands is called Ember.
S&P noted in the presale report that the mortgages in the loan pool are well seasoned, with a weighted average seasonine of 105 months.
However, the average loan amounts and property valuations are greater than comparable Dutch RMBS pools. The pool's weighted average loan-to-value ratio at 95%, is also relatively high.
Royal Bank of Scotland is the lead arranger on the deal and Venn Partners will act as the issuer advisor, according to the presale report.