KBRA Affirms All Classes of Agora Securities UK 2021 DAC
28 Jun 2024 | London
KBRA affirms all of its outstanding ratings for Agora Securities UK 2021 DAC, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a decrease in the KLTV from the prior review and securitisation. However, the magnitude of the changes does not warrant rating changes at this time.
The transaction collateral consists of a £211.5 million limited recourse, first lien mortgage loan secured by the borrowers’ freehold and leasehold interests in nine retail warehouse assets located in individual markets throughout six regions in the United Kingdom. The properties are leased to a granular roster of approximately 130 tenants, comprising a variety of multinational and regional retailers. The property pool remains the same since closing and has a current combined lettable area of 2.5 million square feet and is 98.0% leased, up from 97.1% at the last review and 90.0% at securitisation. There is also £81.3 million of outstanding mezzanine debt that is held outside the trust. The borrower recently executed its second extension option and the current earliest maturity is July 2025, subject to the extension option conditions being met at the July 2024 IPD. The loan sponsor is an affiliate of Brookfield Property Partners.
KBRA analysed the cash flow for the properties utilising information from the trustee and servicer to determine KNCF. The analysis produced a KNCF of £32.1 million and KBRA value of £333.1 million (£133 per sf). The resulting in-trust KLTV is 63.5%, lower than 65.7% at last review and 74.1% at securitisation. KBRA revises the loan’s KPO from Perform to Outperform as a result of improved occupancy and cash flow.
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