CMBS

During 2018, Real Estate Capital heard from many players in the European real estate finance market. Here is a taste of what they had to say on the industry’s key topics.

Data published during the year reveal relatively stable European financing conditions and a revived CMBS market.

An influx of capital to the sector, the return of CMBS and the hunt for extra yield were among the year’s most influential trends.

The two banks have issued the first post-crisis transaction with significant French real estate exposure.

BAML’s Devonshire Square transaction in London comes amid widening pricing in the securitisation space.

The securitisation of debt linked to a logistics property achieved 75bps for its highest-rated notes, following a trend of constricted prices in the market.

Morgan Stanley has securitised a portion of the circa £345 million whole loan which it provided to Blackstone last May to refinance the Devonshire Square estate in the City of London.

The launch of a UK student housing-backed bond shows that capital markets distribution remains an option, but only in certain cases.

Canadian real estate investor Brookfield has priced a £215 million senior secured bond in the first publicly-traded deal in the European CMBS market in 2017.

Investment manager PIMCO has launched a global fund to invest in mortgage-backed securities in order to generate a source of returns “across full market cycles”.