Paul Hastings advises on the first publicly offered European CMBS since the credit crunch
London, UK (June 28, 2011) Paul, Hastings, Janofsky & Walker (Europe) LLP, a leading global law firm, announced today that it advised Deutsche Bank AG, London Branch in connection with the £302 million Commercial Mortgage Backed Securitisation ("CMBS") by DECO 2011-CSPK which completed today.
The transaction is the first CMBS that has been placed into the market in Europe since 2007. It has been closely monitored by market participants as it is generally considered to represent the re-launch of the CMBS market in Europe and is the first European transaction implementing CMBS 2.0 principles and structural improvements to the CMBS structures before the credit crunch.
The new CMBS issuance is backed by a £302 million loan made to Blackstone to fund its £480 million acquisition of the Chiswick Park Estate, a grade A business park in Chiswick in West London. Blackstone's acquisition was also funded in part by a £60 million mezzanine loan funded by GIC, Singapore's sovereign wealth fund.
Paul Hastings assisted Deutsche Bank in the preparation and negotiation of the transaction documents and the implementation of CMBS 2.0.
The Paul Hastings team is being led by partners
The deal comprises three publicly offered tranches. A £235 million tranche has been rated AAA with a coupon of 1.75 per cent over LIBOR, and there are two higher loan to value tranches of £30 million, rated AA with a coupon of 2.75 per cent over LIBOR, and £37 million, rated A-/A tranche with a coupon of 3.75 per cent over LIBOR.
Chiswick Park in west London is one of Britains largest office parks with nine office buildings let to companies such as Tullow Oil and Paramount Pictures on a 33-acre site.
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