A €2bn loan backed by Italian state-leased assets is to be securitised in continental Europe’s largest issue this year.
The loan to Italian closed-end fund Fondo Immobili Pubblici (FIP) is secured by 396 state-occupied assets transferred to the vehicle in a sale-and- leaseback deal late last year.
The €1.994bn loan, issued by Banca IMI, Barclays Bank, Cassa Depositi e Prestiti and Royal Bank of Scotland, was used to buy the properties, 80% of which are offices, with public buildings such as police stations making up the remainder. The assets were valued at €3.7bn at the end of December but were transferred to the fund for €3.3bn. Fitch Ratings said this reflected a 10% discount to market value to take account of the block sale. Fitch has assigned preliminary AA ratings to the issue. Investire Immobiliare, part of Finnat group, is managing FIP.
In a second securitisation, Campidoglio Finance will issue €121m of bonds backed by revenues raised through the piecemeal sale of commercial and residential property owned by the City of Rome, with an appraised value of €190m and an aggregate offer price of €140m. The process is similar to that used in the SCIP issues in 2003 and 2001, which raised €8.3bn in two deals from the revenues of property sales.
Meanwhile, Credit Suisse First Boston is launching the second securitisation backed by loans secured solely on properties in Germany. Titan 2005-1, the conduit programme’s third, €348.8m, issue, is backed by six loans secured on nine offices, one hotel and three multi-family housing portfolios.
