All information is as of Sept. 30, 2021, unless stated otherwise. New issue transactions are those rated by S&P Global Ratings.
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.
|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.|
|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|
|Weighted average note margin||143||173||140||157||144||133|
|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.|
|List Of European CMBS Surveillance Ratings Actions|
|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|SGS Finance PLC CMBS Notes Ratings Withdrawn; Principal-Only Ratings Assigned||Sept. 30, 2021|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.
|European CMBS: Key Statistics|
|Q3 2021||Q2 2021||Q3 2020|
|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|
|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|
|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|
|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|
|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.
|Specially Serviced Loans|
|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.|
|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.|
|List Of European CMBS Publications|
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;|
|Secondary Contact:||Mathias Herzog, Frankfurt + 49 693 399 9112;|
|Research Contributor:||Shweta Sawant, CRISIL Global Analytical Center, an S&P affiliate, Mumbai|
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