FINANCE: Deutsche Bank is to launch the first commercial mortgage-backed securitisation backed by Irish properties since the fall of Lehman Brothers.
The €175m (£126m) DECO 2015-Harp CMBS comprises three loans – from borrowers understood to include Kennedy Wilson, the Comer Group and Paddy McKillen and Johnny Ronan – secured against 18 properties.
Most of the properties are in Dublin, including the residential element of Kennedy Wilson’s Central Park Dublin and McKillen’s and Ronan’s Treasury Building (pictured). It also includes a small number of assets in Galway and Cork.
The properties are a mix of homes, offices and shops with an average occupancy rate of 83% and a total net lettable area of 1.5m sq ft. The residential element of the portfolio is 97% let.
The issuance will comprise four classes of notes, with LTVs ranging from 32.3% for the A class to 62.8% for the D class.
The last Irish CMBS deal was in 2006.
Deutsche is the lead manager and sole bookrunner on the transaction, which will be launched next month.
