articles Ratings /ratings/en/research/articles/211014-european-cmbs-monitor-q3-2021-12144593 content esgSubNav
In This List
COMMENTS

European CMBS Monitor Q3 2021

COMMENTS

Weekly European CLO Update

COMMENTS

SF Credit Brief: U.S. CMBS Delinquency Rate Declined To 3.6% In November

COMMENTS

SF Credit Brief: U.S. Structured Finance Issuance Of $97 Billion In November Marks Second Consecutive Monthly Record

COMMENTS

A Sudden Correction To Fast-Rising U.S. Home Prices Isn't Likely


European CMBS Monitor Q3 2021

image

All information is as of Sept. 30, 2021, unless stated otherwise. New issue transactions are those rated by S&P Global Ratings.

New Issuance

Six new issue transactions closed during the third quarter of 2021: Agora Securities UK 2021 DAC (It is the first retail transaction since the COVID-19 pandemic commenced), Viridis (European Loan Conduit No. 38) DAC, Last Mile Logistics Pan Euro Finance DAC, Taurus 2021-4 UK DAC, Haus (European Loan Conduit No. 39) DAC, and Atom Mortgage Securities DAC, of which we rated two.

Table 1

Closed Transactions - Q3 2021
Transaction name Issuance amount (€) Arranger No. of loans No. of properties Sponsor Property type Jurisdiction
Agora Securities UK 2021 DAC 211.5 Morgan Stanley and Bank of America 1 9 Brookfield Retail U.K.
Viridis (European Loan Conduit No. 38) DAC 150.0 Morgan Stanley 1 1 Brookfield Office U.K.
Last Mile Logistics Pan Euro Finance DAC* 496.5 Goldman Sachs and Barclays 1 113 Blackstone Light Industrial Germany, The Netherlands, France, Spain, Finland, Denmark, and Ireland
Taurus 2021-4 UK DAC* 848.4 Bank of America 2 2 Blackstone Industrial U.K.
Haus (European Loan Conduit No. 39) DAC* 315.4 Morgan Stanley 1 59 Brookfield Multifamily Germany
Atom Mortgage Securities DAC* 382.9 Bank of America, Morgan Stanley and Standard Chartered 1 6 Brookfield Office U.K.
*Denotes a non-S&P rated transaction.

Table 2

New Issuance Q3 2021 - Pricing
Transaction name Agora Securities UK 2021 DAC Viridis (European Loan Conduit No. 38) DAC Last Mile Logistics Pan Euro Finance DAC* Taurus 2021-4 UK DAC* Haus (European Loan Conduit No. 39) DAC* Atom Mortgage Securities DAC*
Closing date July 9, 2021 July 20, 2021 July 16, 2021 July 28, 2021 August 23, 2021 Sept. 30, 2021
Deal size 211 150 497 157 315 403
Index SONIA SONIA EURIBOR SONIA EURIBOR SONIA
AAA 120 120 75 95 67 80
AA 155 160 105 150 110 110
A 190 190 140 175 140 135
BBB 280 280 190 210 200 190
BB N/A 385 270 310 N/A 280
B N/A N/A 365 375 N/A N/A
Weighted average note margin 143 173 140 157 144 133
Loan margin 300 285 N/A 170 N/A N/A
Excess before senior expenses 157 112 N/A 13 N/A N/A
EURIBOR--Euro Interbank Offered Rate. N/A--Not applicable. *Not rated by S&P Global Ratings.

Chart 1

image

Chart 2

image

Chart 3

image

Surveillance

Table 3

List Of European CMBS Surveillance Ratings Actions
Article Publication date
Taurus 2018-2 UK DAC Class A And B CMBS Notes Ratings Raised Aug. 11, 2021
SGS Finance PLC CMBS Notes Ratings Withdrawn; Principal-Only Ratings Assigned Sept. 30, 2021
Helios Finance DAC Class E U.K. CMBS Rating Lowered Following Nonpayment Of Interest Sept. 30, 2021

The outstanding S&P Global Ratings-rated European CMBS balance slightly decreased to €29.64 billion from €30.03 billion over the last quarter. The decrease in the note balance is due to two loans repaying this quarter and the change in the net effect of currency rate movements.

Table 4

European CMBS: Key Statistics
Q3 2021 Q2 2021 Q3 2020
1.0 loans
Collateral balance (bil. €) 15.8 16.2 18.3
Number of loans outstanding 14 14 21
Number of transactions outstanding 13 13 19
Proportion of loans in special servicing (%) 0.0 0.0 21.1
2.0 loans
Collateral balance (bil. €) 13.9 13.8 13.2
Number of loans outstanding 36 37 37
Number of transactions outstanding 32 32 31
Proportion of loans in special servicing (%) 8.3 8.1 8.1
Total
Collateral balance (bil. €) 29.6 30.0 31.5
Number of loans outstanding 50 51 58
Number of transactions outstanding 45 45 50
Proportion of loans in special servicing (%) 6.0 5.9 12.1

Table 5

Loans Repaid
Transaction Loan Jurisdiction Asset type Loan maturity date Note final maturity date Comment
Kantoor Finance 2018 DAC Iron Loan The Netherlands Mixed Use Nov 15. 2022 May 22. 2028 The Iron loan repaid in full in Sep. 2021
Cold Finance PLC Cold Finance PLC UK Mixed Use Jul. 08, 2022 Aug. 20, 2029 The Cold Finance PLC loan repaid in full in Aug. 2021

Table 6

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 204,276,935 100.00 Aug. 16, 2021 Y 0.6892 CBRE Loan Services Limited N 3 Mixed Use Finland
Scorpio (European Loan Conduit No.34) DAC Project Scorpio 333,821,908 100.00 Nov. 17, 2021 Y 0.6514 Mount Street Mortgage Servicing Ltd. N 110 Office U.K.
Magenta 2020 PLC Senior Loan 312,868,973 100.00 Dec. 31, 2021 Y 0.7219 CBRE Loan Services Limited N 17 Mixed Use U.K.
Salus (European Loan Conduit No. 33) DAC Senior Loan 428,799,000 100.00 Jan. 23, 2022 Y 0.579 Mount Street Mortgage Servicing Ltd. N 1 Office U.K.
EOS (European Loan Conduit No. 35) DAC Senior Loan 159,212,750 100.00 Apr. 20, 2022 Y 0.484 Mount Street Mortgage Servicing Limited N 112 Mixed Use The Netherlands
Taurus 2018-2 UK DAC Securitised Acquisition Facility Loan 146,265,759 100.00 May 20. 2022 Y 0.215 Mount Street Mortgage Servicing Ltd. N 1 Office U.K.
Oranje (European Loan Conduit No. 32) DAC Phoenix Loan 92,844,450 60.45 Aug. 15, 2022 Y 0.4761 Mount Street Mortgage Servicing Limited N 15 Office The Netherlands
Kanaal CMBS Finance 2019 DAC Big 6 (Tranche A, Tranche B) 123,414,096 49.00 Aug. 12, 2022 Y 0.6002 CBRE Loan Services Limited N 6 Retail The Netherlands
*Loan maturity may be extended if certain conditions are met. LTV--Loan to value.

Specially Serviced Loans

The number of loans in special servicing remains as three, with no changes occurring since the fourth quarter of 2020.

Of the loans in special servicing these comprise of hotel (70.1%) and retail (29.9%) assets.

Table 7

Specially Serviced Loans
Transaction Loan Jurisdiction Asset type Comment
Additions
N/A N/A N/A N/A N/A
Cures/resolved
N/A N/A N/A N/A N/A
Unresolved
Debussy DTC PLC Toys R Us UK Properties U.K. Retail The loan was transferred into special Servicing on Feb. 23, 2018.
Elizabeth Finance 2018 DAC Maroon loan U.K. Retail The loan was transferred into special Servicing on Apr. 15, 2020.
Helios (European Loan Conduit No. 37) DAC Project Atlas U.K. Hotel The loan was transferred into special Servicing on Nov. 23, 2020.
N/A--Not applicable.

Chart 4

image

Chart 5

image

Appendix

Table 8

Special Servicing Index
Transaction Loan Loan origination date Date added Jurisdiction Asset type Special servicer
Debussy DTC PLC Toys R Us UK Properties March 28, 2013 Feb. 22, 2018 U.K. Retail CBRE Loan Services Ltd.
Elizabeth Finance 2018 DAC Maroon loan Nov. 29, 2017 April 20, 2021 U.K. Retail Mount Street Mortgage Servicing Ltd.
Helios (European Loan Conduit No. 37) DAC Project Atlas Dec. 12, 2019 Nov. 23, 2020 U.K. Hotel Mount Street Mortgage Servicing Ltd.

Table 9

List Of European CMBS Publications
Article Publication date Type
N/A
N/A--Not applicable
Data notes

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 onward are classified as 2.0 loans. All other loans originated before this period are defined as 1.0 loans.

This report does not constitute a rating action.

Primary Credit Analyst:Carla N Powell, London + 44 20 7176 3982;
carla.powell@spglobal.com
Secondary Contact:Mathias Herzog, Frankfurt + 49 693 399 9112;
mathias.herzog@spglobal.com
Research Contributor:Shweta Sawant, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to: research_request@spglobal.com.


Register with S&P Global Ratings

Register now to access exclusive content, events, tools, and more.

Go Back