All information is as of Sept. 30, 2020, unless stated otherwise.
One new-issue U.K. transaction closed during the third quarter of this year, Taurus 2020-2 UK DAC.
|Closed Transactions - Q3 2020|
|Transaction name||Issuance amount (€)||Arranger||No. of loans||No. of properties||Sponsor||Property type||Jurisdiction|
|Taurus 2020-2 UK DAC*||450.0||Bank of America||1||285||Blackstone||Light industrial||U.K.|
|*Not rated by S&P Global Ratings.|
|New Issuance Q3 2020 - Pricing|
|Transaction name||Taurus 2020-2 UK DAC|
|Closing date||Aug. 1, 2020|
|Weighted average note margin||248|
|Excess before senior expenses||Match funded|
|List Of European CMBS Surveillance Ratings Actions|
|DECO 2019-RAM U.K. CMBS Ratings Lowered Following Review||Sept. 16, 2020|
|Intu (SGS) Finance CMBS Notes Ratings Lowered Then Raised Following Change In Rateable Promise||Sept. 11, 2020|
|Longstone Finance Class C U.K. CMBS Notes Rating Raised; Class A And B Affirmed||July 29, 2020|
|Various Rating Actions Taken In Three European Hotel-Backed CMBS Transactions||July 1, 2020|
The outstanding S&P Global Ratings-rated European CMBS balance marginally decreased to €31.5 billion from €32.7 billion over the last quarter. The decrease in the note balance is mainly due to the partial redemption of the CGG-Tambelle REDO 3 loan in DECO 14-Pan Europe 5 B.V., following a sale of the loan on Dec. 16, 2019. The change also reflects the net effect of currency rate movements.
|European CMBS: Key Statistics|
|Q3 2020||Q2 2020||Q3 2019|
|Collateral balance (bil. €)||18.3||18.6||16.8|
|Number of loans outstanding||21||22||30|
|Number of transactions outstanding||19||19||23|
|Proportion of loans in special servicing* (%)||21.1||22.7||40.0|
|Collateral balance (bil. €)||13.2||14.0||14.2|
|Number of loans outstanding||37||37||34|
|Number of transactions outstanding||31||31||28|
|Proportion of loans in special servicing (%)||8.1||8.1||5.9|
|Collateral balance (bil. €)||31.5||32.7||31.0|
|Number of loans outstanding||58||59||64|
|Number of transactions outstanding||50||50||51|
|Proportion of loans in special servicing (%)||12.1||13.6||21.9|
|*The proportion of loans in special servicing figure for the 1.0 loans has an upwards bias since those which have already repaid without going through a workout process are excluded from the calculation. We expect this figure to decrease over time as more 1.0 loans are resolved or pass their legal final maturities.|
|Transaction||Loan||Jurisdiction||Asset type||Loan maturity date||Note final maturity date||Comment|
|DECO 14—Pan Europe 5 B.V.||CGG- Tambelle REDO 3||Germany||Mixed use||Jan. 20, 2014||Oct. 27, 2020||The senior CGG loan was sold at a loss on Dec. 16, 2019.|
|List Of Next 12 Months' Maturing Loans|
|Deal name||Loan name||Loan balance (€)||% of portfolio||Loan maturity||Extendable?||LTV (%)||Servicer name||Specially serviced?||No. of properties||Asset type||Jurisdiction|
|Taurus 2019-4 FIN DAC||Senior Loan||204,276,935||1||Aug. 16, 2021||Y||58.93||CBRE Loan Services Limited||N||3||Mixed use||Finland|
|Scorpio (European Loan Conduit No.34) DAC||Project Scorpio||317,827,317||1||Nov. 17, 2020||Y||66.82||Mount Street Mortgage Servicing Ltd.||N||112||Office||U.K.|
|Patrimonio Uno CMBS S.r.l.||Project Patrimonio||35,941,659||1||Dec. 31, 2020||N||15.57||Mount Street Mortgage Servicing Ltd.||N||28||Mixed use||Italy|
|Elizabeth Finance 2018 DAC||Maroon loan||73,515,555||1||Jan. 15, 2021||Y||73.94||CBRE Loan Services Limited||Y||4||Retail||U.K.|
|Libra (European Loan Conduit No. 31) DAC||Senior Loan||223,657,261||1||Jan. 20, 2021||Y||63.21||Mount Street Mortgage Servicing Ltd.||N||49||Mixed use||Various|
|Taurus CMBS (U.K.) 2006-2 PLC||The Mapeley Loan||91,015,556||1||Apr. 20, 2021||N||75.00||Capita Asset Services (UK) Ltd||N||47||Office||U.K.|
|Kanaal CMBS Finance 2019 DAC||Big 6 (Tranche A, Tranche B)||128,232,102||1||May. 15, 2021||Y||CBRE Loan Services Limited||N||17||Retail||Netherlands|
|Taurus 2018-2 UK DAC||Securitised Acquisition Facility Loan||245,269,145||1||May. 20, 2021||Y||38.61||Mount Street Mortgage Servicing Ltd.||N||1||Office||U.K.|
|Taurus 2019-3 UK DAC||Securitised Senior Loan||464,557,286||1||Jun. 20, 2021||Y||63.02||Mount Street Mortgage Servicing Ltd.||N||21||Student accomodation||U.K.|
|*Loan maturity may be extended if certain conditions are met. LTV--Loan to value.|
Specially Serviced Loans
The number of loans in special servicing has decreased to seven loans from eight.
A small number of loans breached their special servicing triggers over the last quarter, most notably for some of the hotel transactions. However, in each case the loans were not moved to special servicing. Instead, the sponsor offered concessions in the form of cash deposits to have these breaches waived.
The loans in special servicing comprise mixed-use, retail, and office loans. The retail sector represents 77% of the total volume of loans in special servicing, compared with 3% for the office sector loans and 20% for the mixed-use loans.
|Specially Serviced Loans|
|DECO 14—Pan Europe 5 B.V.||CGG- Tambelle REDO 3||Germany||Mixed use||The senior CGG loan was sold at a loss on Dec. 16, 2019.|
|Special Servicing Index|
|Transaction||Loan||Loan origination date||Date added||Jurisdiction||Asset type||Special servicer|
|Elizabeth Finance 2018 DAC||Maroon loan||Nov. 29, 2017||April 15, 2020||U.K.||Retail||CBRE Loan Services Limited|
|Deco 2014-Tulip Ltd.||The Orange Loan||May. 14, 2014||July 24, 2019||Netherlands||Mixed use||Situs Asset Management|
|Debussy DTC PLC||Toys R Us UK Properties||Mar. 28, 2013||Feb. 22, 2018||U.K.||Retail||CBRE Loan Services Limited|
|JUNO (ECLIPSE 2007-2) Ltd.||PRINS_BOUDEWIJN||Dec. 21, 2006||Feb. 10, 2015||Belgium||Office||Link Asset Services (London) Ltd.|
|Epic (Drummond) DAC||Zenon||Aug. 16, 2006||Dec. 20, 2013||Greece||Retail / car parks||The Royal Bank of Scotland PLC|
|DECO 14—Pan Europe 5 B.V.||Mansford Nord Bayern||Dec. 29, 2006||Dec. 17, 2012||Germany||Retail||Situs Companies (The)|
|DECO 14—Pan Europe 5 B.V.||Arcadia||Dec. 21, 2006||March 5, 2010||Germany||Mixed use||Situs Companies (The)|
|List Of European CMBS Publications|
|U.S. And European CMBS COVID-19 Impact: Retail And Lodging Are The Hardest Hit||Sept. 29, 2020||Commentary|
|European Structured Finance Outlook H2 2020: Weathering The Storm||July 28, 2020||Commentary|
The figure for the total number of loans in European CMBS transactions that we rate excludes the loans in small-loan transactions, nonperforming loan (NPL) transactions, and commercial real estate collateralized debt obligations (CRE CDOs).
Loans that were originated from the year 2009 onwards are classified as 2.0 loans. All other loans originated before this period are instead defined as 1.0 loans.
This report does not constitute a rating action.
|Primary Credit Analyst:||Oliver Thomas, London + 44 20 7176 8589;|
|Secondary Contact:||Mathias Herzog, Frankfurt (49) 69-33-999-112;|
|Research Contributor:||Simran Nawani, CRISIL Global Analytical Center, an S&P affiliate, Mumbai|
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