KBRA Affirms All Classes of BERG Finance 2021 DAC
23 May 2024 | London
KBRA affirms all of its outstanding ratings of BERG Finance 2021 DAC, a CMBS transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a decrease in the KLTV from the prior review and from securitisation. However, the magnitude of the change does not warrant rating changes at this time.
At closing, the transaction collateral consisted of two non-crossed, limited recourse, first lien mortgage loans: Big Mountain and Sirocco. The €148.3 million Big Mountain loan was secured by the borrowers’ freehold interests in a portfolio of 24 offices and one industrial asset located in the Netherlands and France. The loan was repaid in full and the related proceeds were applied against the outstanding notes’ balance at the July 2022 NPD. The €150.8 million Sirocco loan was secured by the borrowers’ freehold interests in four office properties located across Austria (46.5% ALA), Netherlands (21.9%), Finland (15.9%), and Germany (15.6%). Since closing, three properties have repaid at a release premium of 119.0% of the relevant ALA which, along with scheduled amortisation, has resulted in the Sirocco loan paying down 67.3% to €49.4 million as of the current review. The last remaining property is the Austria property (“Peak Vienna”), a 31-storey office building located in Vienna, Austria.
KBRA analysed the cash flow for the remaining property utilising information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of €4.3 million and KBRA value of €71.4 million (€1,777 per sqm). The resulting in-trust KLTV is 69.2%, lower than 77.0% at last review and 96.1% as at securitisation. KBRA maintains a KPO of Perform on the Sirocco loan.
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