Marc Goldberg

Together completes second commercial real estate MBS

Together has completed its second public small balance commercial real estate mortgage-backed securitisation.

The £249m Together Asset Backed Securitisation 2021 – CRE2 PLC (CRE2) has an advance rate of 95%, and 79.75% of the issued notes were rated AAA(sf) by S&P and DBRS.

CRE2 is supported by a portfolio of first and second-charge mortgages, secured against small value commercial, residential and mixed-use properties located in England, Wales and Scotland, with 40% of the underlying borrowers being self-employed.

Some 77.1% of the portfolio comprises commercial properties, with 17.9% being mixed-use, and the remaining 5% residential.

CRE2 complements the group's existing five public mortgage backed securitisations, four private securitisations, senior secured notes, and revolving credit facility.

Citibank acted as sole arranger and sole lead manager for the latest MBS.

Marc Goldberg, commercial CEO at Together (pictured above), said: “We think that the commercial property market is underserved and our latest securitisation presents a great opportunity for investors and for Together to grow our business.

“It follows our £200m small balance commercial real estate backed securitisation in March, and provides further support for businesses who will play a crucial role in the UK’s recovery from the challenges of the coronavirus pandemic.”

The lender recently announced its results for the quarter to 31st March 2021, showing a 68.5% growth in average monthly originations from the quarter to 31st December 2020 to £125.4m, a closing loan book of £3.9bn, and achieving a quarterly underlying profit before tax of £44m.

Gary Beckett, group managing director and chief treasury officer at Together, added: "This is our fourth successful public transaction since the commencement of the pandemic, as we continue to add further strength and diversity to our funding platform.

“We would like to thank our funding partners who continue to show strong support for the Together growth story.”

Leave a comment