£263m Toys "R" Us CMBS Opens Doors to Non-Prime Commercial Property Securitisations, Says Appointed Servicer, Situs

First non-prime [commercial property] European commercial securitisation transaction since the financial crisis

NEW YORK & LONDON--()--Situs, the leading global real estate advisory firm, today announced it has been named as Servicer and Special Servicer for the £263m Debussy DTC PLC CMBS on the Toys "R" Us UK portfolio.

This transaction represents the first secondary commercial property portfolio to return to European securitisation markets since the global financial crisis. Situs’ appointment will contribute to its growing market leadership in servicing European securitisations, reflecting its strong reputation in providing innovative solutions on similar transactions in Europe and the US.

Toys "R" Us refinanced the matured Vanwall transaction in April 2013 with an initial seven-year fixed rate bridge loan. The loan has subsequently been securitised into the Debussy DTC PLC £263m CMBS issuance on 24 July 2013 with the transaction having been tailored by the lending requirements of Toys "R" Us and the underlying noteholders. The securitisation has been structured by Cairn Capital as Arranger with the transaction comprising three classes of bonds A, B and C with ratings provided by Standard & Poor's and DBRS to the Class A Notes.

“As European markets stabilise, investors are looking for growth, so it is inevitable that the focus will start to shift from prime assets to secondary assets,” stated Bruce Nelson, Chief Operating Officer of Situs. “With the introduction of the Debussy DTC PLC CMBS transaction, hopefully we will see this kick-start the financing of other challenging asset classes, and show an evident recovery in the European securitisation markets. In conjunction with Cairn Capital, we are working to help our industry and the market by being flexible and innovative in adopting new structures, taking on more responsibilities and providing better reporting and transparency to the market, helping instil confidence.”

Situs’ European servicing operations are primarily run and managed out of London, with some assets and portfolios overseen by Situs Global Servicing subsidiary in Frankfurt, Germany.

Situs has over €22 billion in primary servicing, and is one of the largest third-party servicers in Europe. Since the beginning of 2012, it has been named the primary and/or special servicer on the majority of the securitisations issued, including Merry Hill Deco 2012, Florentia 2012, Taurus 2013 GMFI, Chiswick-Deco 2013, and Debussy DTC PLC transactions. As Special Servicer, it is responsible for over €700 million of troubled assets.

For more information visit http://www.situs.com/.

About Situs

Situs, a Ranieri Partners Company, is the premier provider of commercial real estate loan advisory services and integrated process solutions. It offers a full complimentary suite of professional advisory services, and a customised service model to meet the high demands of its clients and partners.

Since 1985, its value proposition has been focused on four main areas: enterprise and process improvement; capital markets and real estate advisory; primary and special servicing; and creative staffing solutions that provide real-time scalability and cost containment. Its clients and partners benefit from its highly flexible business model, and customized solutions that provide data transparency, enhanced credit analytics, execution risk mitigation and operational efficiencies.

Its deep expertise in global financial markets, as well as commercial real estate credit and valuation, provides its clients and partners a profoundly different experience, which is anchored by its tried and tested team of seasoned professionals. Its track record has created a respected industry brand, with demonstrated integrity in cyclical markets.

About Situs’ CMBS Special Servicing and Non-Performing Loan Asset Management

Situs offers a comprehensive suite of integrated, customizable services to support distressed debt acquisition, management and disposition. Its corporate culture of independence, transparency and integrity, permits it to focus on maximizing the recovery for its clients and partners. Situs achieves superior results through its skill as active distressed debt asset managers, not simply passive financial engineering. Executing its strategy over multiple market cycles across the global markets and all asset classes, its managing of CMBS & NPL portfolios provides insight into “real time” market colour of property and market dynamics. Situs’ deep network of market specific professionals provides a competitive advantage in the acquisition and management of distressed assets.

Situs’ asset management team leverages the experience of its primary servicing and CRE advisory practices to support the management of performing, sub-performing, non-performing loans and equity portfolios. Its services include, loan-specific re-underwriting to assist in the management of loan maturities and potential default situations and direct REO operating, re-positioning and liquidation management. Time-tested and rigorous property-level analysis, business plan diligence and investment review processes developed in the course of completing thousands of transactions worldwide enable us to identify and manage potential risks to the benefit of its clients and partners.

With European offices in London, Dublin, Copenhagen and Frankfurt, Situs provides its clients global experience and expertise, tempered by the needs and practices of the local market. Its skill set and capabilities also address the needs of financial institutions, by advising on market leading loan portfolio transactions.

Situs is a rated Special Servicer by both Fitch Ratings and Standard & Poor’s.

Contacts

PRESS:
Cognito
Oksana Poltavets
+1 646-395-6300
situs@cognitomedia.com

Release Summary

Situs, the leading global real estate advisory firm, today announced it has been named as Servicer and Special Servicer for the £263m Debussy DTC PLC CMBS on the Toys R Us UK portfolio.

Contacts

PRESS:
Cognito
Oksana Poltavets
+1 646-395-6300
situs@cognitomedia.com