ING Real Estate has announced the completion of its first collateralised mortgage-backed securities (CMBS) transaction via LEO (UK) CMBS No.1 plc. The £182.75m e267.2m) transaction was arranged and lead-managed by ING Wholesale Banking on behalf of ING Real Estate Finance, which originated the underlying loan. The loan is secured on part of the European headquarters of Goldman Sachs in London.
The issue comprised £100m e69.8m) class B notes. The class A notes were listed on the Irish Stock Exchange. The unrated and non-listed class B notes were placed with ING Real Estate Finance UK, London Branch. ING Real Estate Finance will be the servicer of the loan.
The structure was designed to sell down a large portion of the loan to third party investors while allowing ING Real Estate to retain a position in the loan via its purchase of the class B notes.
ING claimed an "overwhelming" interest from investors, which resulted in tight pricing on the class A notes.
Hein Brand, chief executive of ING Real Estate Finance said: "The European CMBS market is almost certain to show substantial growth in the coming years."
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