LAWFUEL – Press Release Service – Herbert Smith has advised London & Regional on the company’s largest securitisation yet, a £256 million commercial mortgage-backed securitisation (CMBS) of 27 properties by London & Regional Debt Securitisation No. 2 PLC.
The properties included in the securitised portfolio are a diverse mix of office space, retail space, hotels and leisure facilities, owned by 20 different companies. The deal uses a dual special-purpose vehicle structure and is rated by Fitch and Moody’s.
It is the company’s second CMBS transaction (Herbert Smith also advised on the first, a £235.1 million deal in November 2005).
London & Regional will use the proceeds from this CMBS to refinance existing property finance arrangements.
Securitisation partner Jane Borrows commented:
“The Herbert Smith team is delighted to have worked with London & Regional on their largest CMBS to date. This is another example of our ability to handle complex transactions requiring real estate, property finance and securitisation expertise. It is one of a number of projects for this client on which relationship partner, Chris de Pury, has been involved and follows on closely from London & Regional’s £200 million acquisition of Next Generation Health Clubs on which Chris de Pury and Simon Chadney led the team.”
The Herbert Smith team was led by Jane Borrows. Simon Chadney provided property finance advice. Chris de Pury provided real estate advice and Bradley Phillips provided tax advice.
Morgan Stanley acted as lead manager and was advised by Allen & Overy LLP.