DBRS Confirms Ratings for Taurus 2013 (GMF1) PLC

DBRS has today confirmed the ratings on the following classes of Commercial Real Estate Loan Backed Floating-Rate Notes due 2024 issued by Taurus 2013 (GMF1) PLC:

-- Class A at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D at BBB (sf)
-- Class E at BBB (low) (sf)
-- Deferred Arrangement Certificates at A (sf)

All trends are Stable.

The transaction consists of two fixed-rate loans and two floating-rate loans, which as of the December 2013 quarterly reporting, had a total balance of EUR 1,066,656,440, representing a collateral reduction of 0.76% since issuance in May 2013. The loans are cross-collateralized and cross defaulted, and each has its own borrower and guarantor, all an affiliate of the sponsor, GAGFAH S.A. (GAGFAH).

As of YE2013, the collateral portfolio consisted of 36,717 residential units, 829 commercial units, 5,623 parking units and 1,982 other units, with the residential and commercial units comprising a total leasable area of 2,161,129 square metres. Since issuance, 580 residential units have been sold, 30 commercial units have been sold, 51 other units have been added as collateral and there has been no change to the number of parking units. The portfolio reported financial vacancy of 5.0%, down from 5.1% at YE2012. Financial performance remains stable as the portfolio reported YE2013 cash flow of EUR 88.75 million, an increase of 3.2% compared with YE2012 figures. The resulting projected YE2013 debt service coverage ratio was 1.82x. Additionally, the collateral was valued at EUR 1.78 billion at YE2013, an increase of 2.1% compared with the February 2013 valuation, despite the decrease in total collateralized units.

The portfolio collateral is primarily located in Dresden, Germany, as over 98% of the residential and commercial units are within city limits. As of December 2013, these units accounted for over 98% of the portfolio’s total cold rent and had financial vacancy rates of 4.3% and 11.9%, respectively. GAGFAH is an experienced owner and manager of multifamily residential real estate in Germany and has of a portfolio of approximately 185,000 residential units, with its largest concentration of units located in Dresden (approximately 37,000 units). It maintains one of its two regional offices and four customer centres in Dresden.

Notes:
All figures are in Euros unless otherwise noted.

The applicable methodologies are European CMBS Rating Methodology, European CMBS Surveillance, Legal Criteria for European Structured Finance Transactions and Unified Interest Rate Model for European Securitisations, which can be found on our website under Methodologies.

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