Deutsche Bank could add a Spanish element to its forthcoming CMBS.
The securitisation will be the first Iberian CMBS this cycle.
The bank is considering adding a loan it made to a joint venture between Baupost, GreenOak and Grupo Lar for their purchase of eight Spanish retail assets from Vastned in April last year.
The loan of around €104m (£74m) was secured against seven shopping malls, including Madrid Sur, Madrid Las Rosas and La Rosaleda in Malaga, and a retail park. The finance reflected a loan-to-value ratio of 65% of the €160m price.
The finance has been priced at more than 400bps over Euribor.
The Spanish loan would be joined in the CMBS with a €100m facility the bank made to Baupost and Eurofund Investments for the €170m purchase of the Dolce Vita Tejo centre in Amadora, Portugal, from ING in February.
The CMBS is considered a “voyage of discovery” for both the bank and ratings agencies, as they explore the Iberian CMBS markets for the first time.
Legal structures and property markets in Portugal remain largely unknown to the ratings agencies and may mean the rating and structuring of the bond take longer than CMBS deals in established jurisdictions.
