Together issues second commercial real estate MBS

The mortgage and specialty loan provider stated that Together Asset Backed Securitization 2021 – CRE2 plc (“CRE2”) – £ 249 million – had a prepayment rate of 95% and 79.75% of the S&P and DBRS bonds issued were AAA ( sf).

Gerald Grimes, designated Group CEO of Together, said: “We are pleased to announce the successful completion of our second Small Balance Commercial Real Estate MBS just three months after the announcement of the first transaction of its kind in the UK since the global financial crisis.

“The CRE2 facility, valued at £ 249 million, provides additional resources as we continue to expand our support for UK businesses.”

CRE2 is backed by a portfolio of first and second rate mortgages backed by low value commercial, residential and mixed use properties in England, Wales and Scotland with 40% of the underlying borrowers being self-employed.

Together, 77.1% of the portfolio accounted for commercial real estate, 17.9% for mixed-use real estate, and the remaining 5.0% for residential real estate.

CRE2 complemented the existing five public mortgage-backed securitisations, four private securitisations, senior secured notes and the revolving credit facility.

Gary Beckett, Together Group Managing Director and Chief Treasury Officer, said, “This is our fourth successful public transaction since the pandemic began as we continue to strengthen and diversify our funding platform.

“We would like to thank our financing partners who continue to give strong support to Together’s growth story.”

Together recently announced its results for the quarter ended March 31, 2021, showing a 68.5% increase in average monthly loans for the quarter ended December 31, 2020 to tax 125.4 million of 44.0 million Pound Sterling.

Citibank acted as sole arranger and sole lead manager.