Morgan Stanley is to launch a £455m securitisation of commercial property loans, the sixth in its rolling series of commercial mortgage-backed securities (CMBS).
The loans are secured on the £300m purchase earlier this year, of Cutlers Gardens in the City of London by Peabody Global Real Estate Partners – a joint venture equity fund between JP Morgan Chase and New York’s O’Connor Group. Morgan Stanley provided financing to Peabody for the acquisition.
The deal, known as Anteros, is weighted with another large portfolio. Beside the Cutlers Gardens mortgage, the second largest, with a balance of £153m, is backed by the Sandrim portfolio. This comprises office, industrial and car showrooms. Most of the industrial portion is in Wales. The smallest loan, less than 1% of the pool, is denominated in euro and is secured by an office building in Dublin.
Pubs serve as a small part of the deal’s collateral, but the asset class is said to be a larger part of future deals for Morgan Stanley.
