Thinktank has announced the closure of its seventh commercial mortgage-backed securitisation (CMBS) issue for $750 million, which is the largest CMBS transaction recorded in Australia.
The deal follows a $500 million residential mortgage-backed securitisation (RMBS) issue in August and takes the total value of bonds issued by the specialist commercial and residential property finance provider to $3.2 billion
Thinktank stated the transaction was 1.4 times over-subscribed, representing bids exceeding $1.05 billion and the final CMBS issue consisted of 1262 first mortgage loans averaged at $594,294, which was comprised of industrial spaces, retail, offices, other commercial areas and residential.
More than 80 per cent of properties were located in metropolitan areas with the remainder in non-metropolitan areas, with real money investors representing 70 per cent of the total amount issued and banks accounting for the remaining 30 per cent. SMSF borrowers accounted for 31 per cent of loans and just under 50 per cent of loans were to investors, with the balance to owner-occupiers.
Thinktank CEO Jonathan Street said: “The participation of 20 institutional investors, both in Australia and overseas, for this $750 million deal illustrates a continuation of keen demand for alternate asset-backed issues.
“Nearly two years into COVID, the fact we have been able to successfully complete both CMBS and RMBS issues for A$1250 million in the past few months speaks volumes for how the business has successfully negotiated the pandemic and has continued to provide credit to the critical SME (small and medium-sized enterprises) and self-employed sectors of the economy on a competitive and scalable basis.”
