Originator announces inaugural CMBS transaction

On Monday Thinktank Group Pty Ltd announced that it had closed its $113.6 million CMBS transaction, “Thinktank Series 2014-1”, the first pure small ticket CMBS transaction in Australia since 2007.

“It is a significant transaction for our business as well as for asset backed issuance in the local market and has been achieved through the combined efforts over an extended period of a number of parties,” Thinktank chief executive Jonathan Street said.

Deutsche Bank acted as arranger on the transaction as well as joint lead manager with Commonwealth Bank of Australia.

CBA head of debt markets securitisation Rob Verlander said the transaction demonstrates the strength of the current market and the growing interest in asset classes outside residential mortgages.

“Thinktank has shown it can successfully access the capital markets and we look forward to working with Thinktank to broaden its investor base in the future,” Mr Verlander said.

The Thinktank portfolio of first mortgage commercial property advances supporting the transaction comprises 310 loans with an average size of $366,000 and a weighted LVR of 64 per cent.

Distribution by property type shows 29.5 per cent retail, 49.7 per cent industrial and 15.5 per cent office, with 59.8 per cent located in NSW, 12.6 per cent Victoria and 10.8 per cent in Queensland.

The loan advances, predominantly to self-employed SME borrowers, comprise 62 per cent full documentation, 25.9 per cent alternate verification and 12.1 per cent low documentation.

Loans to owner-occupier borrowers make up 54.8 per cent while the weighted average seasoning on the portfolio is 34 months.