Allen & Overy said today the EUR317 million Kingfisher CMBS transaction from Bank of America Merrill Lynch, the first in Europe this year, may pave the way for other deals to follow in 2016.

The securitisation is backed by a single floating rate loan extended to Blackstone to fund the acquisition of a portfolio of German retail properties. DIY retail space accounts for the majority of the property portfolio, but other assets include supermarkets, shopping centres and retail warehouses. The transaction comprises six debt tranches and has a maturity date of November 2026.

Allen & Overy advised Bank of America Merrill Lynch as arranger and lead manager. The team was led by partner Lucy Oddy, who commented: “Macroeconomic factors have resulted in a subdued European CMBS market since last summer. However, this deal’s success in a difficult market demonstrates that there is investor appetite for this product and we are hopeful that this will encourage other market participants to follow suit and unlock other deals that are currently in the pipeline.”