DBRS Finalises Provisional Ratings to Deco 2014-Gondola S.R.L.

DBRS, Inc. (DBRS) has today finalised the provisional ratings on the following classes of Commercial Mortgage-Backed Floating-Rate Notes Due February 2026 (collectively, the Notes) issued by Deco 2014-Gondola S.R.L.:

-- Class A at AA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (high) (sf)

All trends are Stable.

The collateral consists of three floating-rate loans secured by 20 commercial properties, comprising a total loan balance of €354,962,693. The sponsor for all three loans is Blackstone Real Estate Partners, whom DBRS considers to be a strong operator of commercial real estate assets. All of the real estate assets in the pool are located in Italy, with the majority of these being located in Northern Italy.

The largest loan in the pool, Delphine, has a cut-off loan balance of €138,757,093. This represents 39.1% of the total pool. The loan is secured by five properties, three of which are adjacent to each other. RCS Blocks 1, 2 and 3 comprise a 34,167 square metre office complex located in Milan city centre. The properties are 100% occupied by RCS Media Group, which is a Milan-based international multimedia publishing group. Combined, the RCS properties make up 54.6% of the loan’s collateral value. The other two properties securing the Delphine loan are a 30,737 square metre office building located outside of Rome, which is 100% let to Telecom Italia and a 246-room full-service hotel located in Milan city centre. The Rome asset and the Milan asset represent 27.3% and 18.1% of the loan’s collateral value.

The next largest loan in the pool is Mazer. The loan has a cut-off balance of €134,550,000, which is 37.9% of the total pool balance. The loan is secured by 13 logistics properties located across Northern Italy. No single property represents more than 13.9% of the loan’s collateral value. Ceva Logistics, one of the world’s leading logistics companies, represents 51% of the portfolio’s passing rent.

The smallest loan in the pool, Gateway, has a cut-off loan balance of €81,655,600 and represents 23.0% of the pool. It is secured by two retail shopping centres, Valecentre and Airone Retail Gallery. Valecentre is 49,559 square metres in size and comprises a retail gallery, an office component and an entertainment centre. The property is located in the city of Marcon, which is just north of Venice. The property represents 90.9% of the loan’s total collateral value. Airone Retail Gallery makes up the remaining 9.1% of the loan’s collateral value. Airone Retail Gallery is a 9,683 square metre retail shopping centre located in Monselice, which is southwest of Venice.

The final legal maturity of the Notes is in February 2026, seven years beyond the maturity of the loans. If necessary this is believed to be sufficient time, given the security structure and jurisdiction of the underlying loans, to enforce on the loan collateral and repay bondholders.

The ratings assigned to the Notes by DBRS are based exclusively on the credit provided by the transaction structure and underlying trust assets. All classes will be subject to ongoing surveillance, which could result in upgrades or downgrades by DBRS after the date of issuance.

Notes:
All figures are in Euros unless otherwise noted.

The applicable methodologies are European CMBS Rating Methodology, Legal Criteria for European Structured Finance Transactions, Operational Risk Assessment for European Structured Finance Servicers, Derivative Criteria for European Structured Finance Transactions and Unified Interest Rate Model for European Securitisations, which can be found on www.dbrs.com under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.