UK university halls CMBS payments deferred after student refund

By Tom Brown
07 Jul 2020

Noteholder payments have been deferred in a tranche of UK CMBS backed by university halls of residence after the accommodation operator refunded student’s their rent, putting the loan sponsor in the position of having to speculate on demand recovery following the coronavirus outbreak which saw universities shuttered.

The £232.22m deal, Taurus 2019-3, saw its class ‘X’ notes trigger an interest deferral event after the yield hurdle fell under 8% as of June, 2020. Around 21 purpose-built student accommodation properties across the country back the single loan CMBS.

As the crisis unfolded, universities cancelled nearly all ...

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