Allen & Overy has advised GAGFAH, the second-largest German multi-family property company, on the refinancing and securitisation by way of CMBS (Commercial Mortgage-backed Securities).

The proceeds of the new CMBS (German Residential Funding 2013-1 Limited) with a volume of EUR 2.061 bn were applied to refinance a loan that was securitised in 2006 and secured by GAGFAH’s GRF portfolio comprising approx. 61,600 residential and 469 commercial units.
 
Due to strong investor demand, it was possible to refinance the GRF loan through a CMBS at very attractive terms. Accordingly, the average interest rate of the new CMBS is 2.76% p.a. which is significantly lower than the 4.32% p.a. under the now refinanced GRF loan. The new loan has a term of five years, ending in August 2018, plus a one year extension option, with an agreed amortisation of 0.5% p.a. The CMBS notes will have to be redeemed by August 2024 at the latest. The AAA-tranche of the CMBS accounts for EUR 1.24 bn. For regulatory reasons GAGFAH has retained the first loss piece (Class F) in a volume of EUR 105 mn.

Unlike in traditional securitisations through banks, GAGFAH itself has been primarily responsible for implementing the CMBS transaction. Allen & Overy has provided comprehensive legal advice to GAGFAH in this transaction regarding both the financing and the securitisation, starting from structuring of the transaction, contract negotiations through to the execution of the new loan agreement and the issuance of the CMBS notes.

The Allen & Overy team comprised primarily partners Dr Olaf Meisen (Finance), Matt Howard (Capital Markets/Securitisation), Mark Manson-Bahr (Finance, all Frankfurt), Christian Lambie (Capital Markets/Securitisation, London), Dr Heike Weber (Tax, Frankfurt), Pierre Schleimer (Finance, Luxembourg), counsel Stefan Kuhm (Finance) and Dr Stefan Henkelmann (Capital Markets/Securitisation), senior associates Vanessa Pfeiffer (Finance), Stuart Gregory and Jens Nollmann (both Capital Markets/Securitisation, all Frankfurt) and David O’Connor (Capital Markets/Securitisation, London) as well as associates Nadja Petrow, Magdalena Filipkowski (both Finance), Bella Ward, Danister de Silva (both Capital Markets/Securitisation, all Frankfurt) and Sandy Tapnack (Capital Markets/Securitisation, London).

http://www.allenovery.com/news/en-gb/articles/Pages/Allen--Overy-ber%C3…