Glastonbury Finance 2007-1 PLC, was the first Commercial Real Estate Collateralised Debt Obligation (‘CRE CDO’) to be launched by a European institution in Europe. The total raised was £353 million.
The underlying collateral consisted of Commercial Mortgage Backed Securities, rated BBB or better at closing/date of acquisition.
The CDO comprised nine Classes, initially rated by Derivative Fitch (‘Fitch’) and Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. (‘S&P’) as follows:
At close on 30th April 2007 approximately 73% of the CMBS book was denominated in GBP and backed by UK real estate assets. The remaining 27% of the book comprised Euro denominated assets and was split between four EU countries (Germany, Italy, Netherlands and Ireland). Second largest concentration, by location, was Germany with 19% of the book. By property type, the portfolio comprised retail, office, mixed use, pubs and multi-family (in this order by volume).
Dresdner Kleinwort and Eurohypo were Joint Arrangers of the deal. Dresdner Kleinwort was Sole Book Runner and was Joint Lead Manager with Commerzbank.
The assets of Glastonbury were sold and the Notes repaid in April 2015