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Together issues first commercial real estate MBS

Together Financial Services Limited has completed its first public small balance commercial real estate mortgage backed securitisation.

 

The £200m Together Asset Backed Securitisation 2021, CRE1 plc, has an advance rate of 95% and 79.5% of the issued notes were rated AAA to AA- by S&P and AAA to A(lo) by DBRS.

CRE1 is supported by a portfolio of first and second charge mortgages secured against small value commercial, residential and mixed use properties located in England, Wales and Scotland, with 58% of the underlying borrowers being self-employed.

The issuance complements the group’s existing four public residential mortgage backed securitisations, four private securitisations, senior secured notes and revolving credit facility.

Gerald Grimes, group chief executive designate of Together said: “We are delighted to announce the successful completion of our £200m small balance commercial real estate MBS, the first transaction of its type in the UK since the Global Financial Crisis.

“The issuance adds further headroom as we continue to support UK businesses and shape our business for an exciting future.”

Gary Beckett, group managing director and chief treasury officer at Together, added: “We are very pleased to have reopened the small balance CRE MBS market in the UK and to have added increased diversification to our funding platform.

“This is our third successful public transaction since the pandemic began, coming on the back of our £500m bond issuance in January and our £366m fourth RMBS in July.”

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