Giant Canary issue boostsfirst-half securitisations

News

01 August 2002

Four office buildings provided security for £1.25bn Canary Wharf deal while repeat issues from the likes of AIB and ProLogis helped take first-half total to €4.58bn

UK property company Canary Wharf led a strong first half of 2002 for the commercial mortgage-backed securities (CMBS) sector, with a £1.25bn securitisation backed by income from the London office complex. According to Commercial Mortgage Alert, European CMBS volumes reached €4.58bn in the first six months of this year.

The Canary Wharf issue was managed by Lehman Brothers, Citigroup, Morgan Stanley and RBS Financial and was backed by the mortgages on four buildings. The bonds were issued through the Canary Wharf Finance II vehicle.

The sector also saw several repeat issues, including Anglo Irish Bank’s (AIB) launch of the Monument Securitisation (CMBS) II vehicle. The transaction, which was managed by Merrill Lynch, was worth €400m and consisted of 138 loans backed by the security of over 273 UK properties.

US logistics firm ProLogis issued its second securitisation backed by assets in more than one country. The €356m transaction, issued through the Pan-European Industrial Properties SA vehicle, used the lease income from distribution warehouses in the UK, the Netherlands, France, Germany and Spain. Using the France Industrial Properties vehicle, ProLogis also securitised properties on three French sites, raising €144m. Most will be secured against its Garonor distribution park in Paris.

Morgan Stanley used the Dionysus (European Loan Conduit) to issue a €458m securitisation on a 56-building portfolio acquired from EDF and valued at €517.8m. This was the European Loan Conduit’s ninth issue.

UK bank Northern Rock carried out its first securitisation with the Dolorite Funding issue. It raised £684m, backed by loans on 594 secondary properties. Almost 20% of the loans were to owner-occupiers in the nursing home and hotel sectors.

Meanwhile, UK student housing developer Unite securitised income from 47 properties to raise £285m with Unite Finance One. UBS Warburg managed the offering.

Four office buildings provided security for £1.25bn Canary Wharf deal while repeat issues from the likes of AIB and ProLogis helped take first-half total to €4.58bn UK property company Canary Wharf led a strong first half of 2002 for the commercial mortgage-backed securities (CMBS) sector, with a £1.25bn securitisation backed by income from the London office complex. According to Commercial Mortgage Alert, European CMBS volumes reached €4.58bn in the first six months of this year. The Canary Wharf issue was managed by Lehman Brothers, Citigroup, Morgan Stanley and RBS Financial and was backed by the mortgages on four buildings. The bonds were issued through the Canary Wharf Finance II vehicle. The sector also saw several repeat issues, including Anglo Irish Bank’s (AIB) launch of the Monument Securitisation (CMBS) II vehicle. The transaction, which was managed by Merrill Lynch, was worth €400m and consisted of 138 loans backed by the security of over 273 UK properties. US logistics firm ProLogis issued its second securitisation backed by assets in more than one country. The €356m transaction, issued through the Pan-European Industrial Properties SA vehicle, used the lease income from distribution warehouses in the UK, the Netherlands, France, Germany and Spain. Using the France Industrial Properties vehicle, ProLogis also securitised properties on three French sites, raising €144m. Most will be secured against its Garonor distribution park in Paris. Morgan Stanley used the Dionysus (European Loan Conduit) to issue a €458m securitisation on a 56-building portfolio acquired from EDF and valued at €517.8m. This was the European Loan Conduit’s ninth issue. UK bank Northern Rock carried out its first securitisation with the Dolorite Funding issue. It raised £684m, backed by loans on 594 secondary properties. Almost 20% of the loans were to owner-occupiers in the nursing home and hotel sectors. Meanwhile, UK student housing developer Unite securitised income from 47 properties to raise £285m with Unite Finance One. UBS Warburg managed the offering.