Download Titan Europe 2007-2 Limited Quarterly Surveillance Report for the

Titan Europe 2007-2 Limited
Quarterly Surveillance Report for the
Collection Period
July 2011 – October 2011
Issue Date: 02nd December 2011
Content
INDEX
1. Deal overview
2. Activity since last reporting for loans in primary servicing
3. Special servicing
4. Contact details
Deal overview
This transaction was a securitisation of 18 commercial loans originated by Credit Suisse
International (CSI) and Credit Suisse (CS). The collateral pool consists of 13
commercial whole loans and the senior tranches of five whole loans, including a 55%
pari passu participation in the senior tranche of one whole loan. The loans are secured
by first-ranking mortgages over 258 properties, including multifamily, hotel, mixed-use,
retail, office and light industrial assets. The properties are located mainly across
Germany (59.9% by securitised balance) with the remainder in the Netherlands
(27.4%), Finland (4.8%), Czech Republic (3.3%), France (3.0%), and Ireland (1.7%).
Interest and principal on the notes is paid quarterly in arrears, commencing in July
2007. Prepayments and balloon payments on the loans will be allocated on a modified
pro rata basis. All scheduled amortisation and recoveries will be applied sequentially to
all classes of notes. The structure features a system of servicing advances, made by
the advance provider or the backup advance provider to the issuer, to cover interest and
principal shortfalls on the loans and certain other expenses, in lieu of a liquidity facility.
Interest payable on the class F and G notes is subject to a cap. Where there are
insufficient funds available to repay interest on these classes on any payment date, the
shortfall will be extinguished and the holder of these notes will have no further claim
against the Issuer. This may occur in certain adverse prepayment scenarios, after which
the average yield on the notes exceeds that available from the outstanding loans
Activity since last reporting
Primary Servicing
MPC Loan
The portfolio consists of 96 assets across the Netherlands with relative concentration in
the regions of Rotterdam and Amsterdam. A granular portfolio in asset and tenant
diversity, the largest tenant represents only 4% of the gross rent roll. Approximately
90% of the Loan is securitised. Loan Maturity is 18th January 2012.
All debt service payments have been made this quarter. Total NOI for the period
remained stable at EUR 10,073,374.00. WALT remains stable at 3.80 years. This loan
is on the watchlist due to pending loan maturity, the Servicer is actively engaged with all
parties on this matter. No material changes to be reported this quarter.
Project Christie
In total the portfolio comprises 4 multi-tenanted retail assets located in East Germany. A
sale-and-leaseback portfolio, Kaufland (of the Lidl Group) is the anchor tenant in each
of the Shopping Centres. Approximately 92% of the Loan is securitised. Loan Maturity
is 18th April 2013.
All debt service payments have been made this quarter. Total Adjusted Rental Income
for the period was EUR 7,028,335.41. (Q2 2011: EUR 6,408,866.03). WALT remains
stable in excess of 6 years.
Following the completion of the restructuring of the Project Christie Whole Loan in May
2011 the Project Christie Borrower has made two consecutive full and timely quarterly
payments under the Project Christie Whole Loan, as modified by the restructuring (on
the quarterly payment dates falling in July 2011 and October 2011). Therefore, in
accordance with the terms of the Servicing Agreement, following the quarterly payment
date falling in October 2011, the Project Christie Whole Loan has become a Corrected
Loan and it has been transferred from the Special Servicer to the Servicer.
Activity
Activitysince
sincelast
lastreporting
reporting
Urbis
This loan is a mixed-use portfolio of numerous assets located in 11 regions across
Germany. Asset use is predominantly office, with retail, multi-family and residential,
mixed-use, light industrial and hotels. Approximately 84% of the whole loan is
securitised. Loan maturity is 18th April 2012.
During the period the Financial Covenants have improved markedly since the last IPD.
This is primarily as a result of the four disposals this quarter, especially Property 57
being the largest property by MV, and associated unscheduled principal repayment of
€97.3m. NOI has decreased during the period from EUR 14.9m to EUR 10.5m as a
result of the disposals. WALT is 3.02 years. This loan is on the watchlist due to pending
loan maturity, the Servicer is actively engaged with all parties on this matter.
Cobalt
This loan consists of 19 retail assets located across Finland. The collateral comprises
16 freehold assets and 3 leasehold assets, the majority of which are located in small
towns in the Western and Southern Provinces of Finland. The whole loan is securitised.
Loan maturity is 18th April 2014.
WALT is in excess of 5½ years. Total Adjusted Rental Income has fallen 12 percent
(EUR 0.2m) to EUR 1.4m due to an increase in non-recoverable expenses. No material
changes to be reported this quarter.
Notre Dame
The loan is secured by two large data centre properties. One is based in the SaintDenis district of Paris, France, and the other in the Blanchardstown area of Dublin,
Ireland. The whole loan is securitised. Loan maturity is 18 January 2012.
The ICR and DSCR covenants have increased significantly since last IPD. This is as a
result of an increase in net rental income along with a reduction in the hedging costs as
the loan nears maturity. WALT remains stable at 7+ years. NOI also remains stable at
EUR 1.3m. This loan is on the watchlist due to pending loan maturity, the Servicer is
actively engaged with all parties on this matter.
Activity since last reporting
Skoduv Palace
This loan is secured by a prime single tenant single asset located in Prague, Czech
Republic. Approximately 50% of the whole loan is securitised. Loan maturity is 18th April
2012.
No material changes to be reported this quarter. WALT is marginally under 15 years.
NOI remains EUR 7.73m. This loan is on the watchlist due to pending loan maturity, the
Servicer is actively engaged with all parties on this matter.
Six Hotels
This is a portfolio of six small hotels located in medium-sized cities and suburbs of
major metropolitan areas across Germany, mainly concentrated in the south. The whole
loan is securitised. Loan maturity is 18th January 2012.
No material changes to be reported this quarter. WALT is 4+ years, and NOI remains
stable. This loan is on the watchlist due to pending loan maturity, the Servicer is actively
engaged with all parties on this matter.
Caprice
This loan is secured by a small diverse portfolio of retail assets located in the former
West Germany. The majority of the portfolio is fast food restaurants. The whole loan is
securitised. Loan maturity was 18th July 2011, this has been extended by 6 months until
18th January 2012.
The DSCR covenant has increased this quarter as a result of the interest rate changing
from fixed to floating, and a decrease in expenses. NOI remains stable, and WALT is
7.7 years. This loan is on the watchlist due to pending loan maturity, the Servicer is
actively engaged with all parties on this matter.
Toy Box
The loan is secured by a single mixed-use asset located near Frankfurt, Germany. The
property comprises offices and a distribution centre. The whole loan is securitised. Loan
maturity is 18th July 2013.
NOI remains stable. WALT is 3 years. No material changes to be reported this quarter.
Activity since last reporting
Sauber
This loan is secured by two small hotels located in central Frankfurt, Germany. The
whole loan is securitised. Loan maturity is 18th April 2012.
No material changes to be reported this quarter. NOI has fallen marginally by 3% to
EUR 0.84m. WALT remains in excess of 7.5 years. This loan is on the watchlist due to
pending loan maturity, the Servicer is actively engaged with all parties on this matter.
Rose
This loan comprises five retail assets located in and around Paris, France. The whole
loan is securitised. Loan maturity is 18th January 2012.
The DSCR and NOI for this loan have increased 13 percent and 6 percent respectively
during the period as a result of a new tenancy in a previously vacant unit. This loan is
on the watchlist due to pending loan maturity, the Servicer is actively engaged with all
parties on this matter.
Würzburg
This loan was redeemed in full at the October 2011 IPD.
Redbus
The loan comprises a single tenant single property data-centre asset located in
Amsterdam, The Netherlands. The whole loan is securitised. Loan maturity is 18th
October 2013.
No material changes to be reported this quarter. NOI and WALT remain stable.
Ton
This is a portfolio of five multi-let mixed-use properties located in Berlin, Germany. The
tenancies are largely residential, with a small number of retail units. The whole loan is
securitised. Loan maturity is 18th October 2013.
NOI has increased marginally by 3 percent. WALT is currently 2.31 years. No material
changes to be reported this quarter.
Special servicing
Project Christie
The Project Christie Whole Loan has become a Corrected Loan and it has been
transferred from the Special Servicer to the Primary Servicer.
Portier
At the October IPD the net sale proceeds following the sale of the portfolio securing the
Portier loan was applied against the loan. There are expected some small additional
amounts during the next quarter and at the January IPD a final recovery determination
will be made.
Nantes
At the October IPD, the Borrower failed to repay in full the principal amount outstanding
of EUR 7,932,589 which was due for repayment on the Loan Maturity Date, and that
non-payment resulted in the occurrence of a Loan Event of Default under the Loan
Agreement. This triggered a Servicing Transfer Event on 18th October 2011, and as
such the Nantes loan has become a Specially Serviced Loan.
Contacts
Reporting Queries – [email protected]
Capita Asset Services (Ireland) Limited,
Block C,
Maynooth Business Campus,
Maynooth,
Co. Kildare,
Ireland
Tel:
Fax:
+353-(0) 1 654 8800
+353-(0) 1 654 8801
ASSET MANAGER
Susie Best
[email protected]
Unless otherwise noted, this document has been prepared by Capita Asset Services (Ireland) Limited or one of its affiliated
companies (collectively referred to as “CAS”), acting as Primary Servicer and/or Special Servicer (collectively referred to as “the
Servicer”) in relation to Titan Europe 2007-2 Limited.
With respect to documents that have been issued as a RIS Notice, such documents have been issued by the issuer of the notes and
have not necessarily been prepared by the Servicer. Deal Summary, CMSA and Asset Surveillance reports will not generally be
issued as RIS Notices.
This document is provided for information purposes to holders of the relevant notes from time to time and prospective investors who
may lawfully receive, and have read, the prospectus for such notes. The information contained herein must be read in conjunction
with, and is qualified by, such prospectus. This document is not directed to, or intended for distribution to or use by, any person or
entity that is a citizen or resident or located in any locality, country, state or other jurisdiction where such distribution, publication,
availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.
The document does not constitute any form of commitment, advice or recommendation on the part of CAS or its officers, affiliates,
advisors, agents or representatives in relation to any transaction. Nothing in any of the documents on this site constitutes any
promotion in respect of any invitation, endorsement or offer to invest in any securities in any jurisdiction. The document is not
intended to represent an offer of securities for sale in the United States or to U.S. persons (within the meaning of Regulation S
under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act").
CAS does not offer or purports to offer investment, tax, regulatory, accounting or legal advice and these documents should not and
cannot be relied upon as such.
Neither CAS, nor any officer or employee thereof of The Capita Group plc or any affiliate accepts any liability whatsoever for any
direct or consequential losses arising from any use of information contained herein, including, without limitation, the reliance on any
information, data or model, or the use of the documents in the preparation of your financial books and records. You must rely solely
on your own examinations of the prospectus for the relevant notes, and consult your own investment, tax, regulatory, accounting or
legal advisors prior to making any investment decisions or taking any other action relating to the information contained on this
document.
Certain information contained in this document is derived from information provided to or obtained by the Servicer from third parties,
including the relevant cash managers. CAS has not independently verified any of such information. Accordingly, CAS does not
guarantee or provide any warranties as to their accuracy or completeness and they should not be relied upon as such.
CAS does not purport that the information contained in this document is all-inclusive or contains all of the information that an
investor may require to make a full analysis of the relevant notes. Each recipient of this document must make its own independent
investigation and analysis of the information and the notes and its own determination of the suitability of any investment in the
relevant notes, with particular reference to its own investment objectives and experience and any other factors which may be
relevant to it in connection with such investment and on such other information and advice from its own legal, accounting and tax
advisers as it deems relevant and without reliance on the document.
Any modelling or back-testing included is not an indication as to future performance of the applicable notes. No representation is
made by CAS as to the reasonableness of the assumptions made within or the accuracy or completeness of any modelling or backtesting contained herein.
Capita Asset Services (Ireland) Limited is regulated by the Central Bank of Ireland under the Investment Intermediaries Act, 1995. It
is registered in Ireland as a private company limited by shares and its registered number is 315348.
The document or information contained herein (whether in whole or in part) may not be reproduced, distributed or transmitted to any
other person or incorporated into another document or other material without the prior written permission of CAS.