RBS has begun marketing a securitisation of the Jupiter portfolio refinance it carried out for Kennedy Wilson Europe Real Estate in September last year.
The securitisation, to be called Antares 2015-1, will be issued in two tranches totalling £171m. The class-A tranche will be a floating-rate note covering the senior part of the finance up to £130.6m, covering 44% of the initial £296m paid for the portfolio. The B notes will cover the balance of the refinance to £40.5m, which sit at a loan-to-value ratio of 58%.
Some 5% of the original loan, rather than the bond, will be retained by RBS.
The A note of Antares has not yet been priced. The B note has been priced at around 180 basis points. Both tranches have been rated by DBRS and Fitch.
The underlying loans cover 18 secondary and tertiary offices, retail and leisure assets. Some 44% of them are Aberdeen offices, including the 213,000 sq ft Seafield House.
At the time of Kennedy Wilson’s purchase of the portfolio, the rental income for Jupiter was estimated to be £25m pa.
The portfolio came up for sale after Cushman & Wakefield and Moorfields Corporate Recovery called in the underlying loans on the Fordgate Commercial Securities 1 CMBS, which was originally structured by Morgan Stanley in 2006.
Kennedy Wilson already had possession of the B notes of the Fordgate CMBS, which it had purchased for £40m from a group of the original lenders.
The underlying loans had originally been made to Moises and Mendi Gertner’s Fordgate on a portfolio once valued at £483m.
