A recovery of sorts: Rejuvenated, European CMBS is making a comeback
Europe’s CMBS market ground to a full stop as a result of the credit crisis and remained closed to new public issuance until well into 2011, when Deutsche Bank issued its DECO 2011-CSPK, a CMBS backed by a loan secured by Chiswick Park, a London office park. During 2012, there was some further CMBS issuance by Deutsche Bank, with its DECO 2012-MHILL and Forentia (Vitus). However, 2013 seems to have been a breakthrough year, with 13 UK and German transactions issued up to the end of November and two more reported to be due by year-end. The question now is whether this burst in issuance is evidence of a revival of CMBS in Europe.
Setting new standards and parameters
Those who would argue in favour of this proposition would point to three principal factors. Firstly, the European CMBS industry has made a deliberate effort to improve confidence in the product by addressing many of