Liquid Real Estate Issue 07

Rare European CMBS deal prices

by Rachel Wolcott

Royal Bank of Scotland’s Vesteda Residential Funding II commercial mortgage-backed securitization has shown that there is appetite for high-quality paper from well-known issuers. The €150 million five-year deal, executed in July, is the only externally placed CMBS in Europe this year, according to RBS. The single tranche of AAA-rated bonds was priced at 100 basis points over three-month Euribor.


"There are investors out there who want to buy securitization product but are not entering the market for credit or fundamental reasons," says Damian Thompson, head of real estate finance securitization at RBS in London. "There is cash out there and investors want to put it to work."

Vesteda II, a tap issuance, was the kind of deal investors have been seeking. The issuer is established in the CMBS market,...


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