BoA bets on German ‘groundscraper’ with airport CMBS

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By Tom Brown
16 Mar 2021

Bank of America is betting on the performance of one of Germany’s biggest office buildings known as “the Squaire” by securitizing a loan secured on the airport-adjacent property, following Blackstone's sale of the building to AGC Equity Partners. Investors appear confident in the deal’s prospects, with initial price thoughts guiding the senior tranche at 120bp on Tuesday.

The €473m deal, Taurus 2021-3, is set to grant direct exposure to hotel and airport office performance, making the CMBS the first of its kind to be issued during the Covid-19 pandemic.

But investors so far seem unperturbed. A deal update released on Tuesday guided the triple-A tranche ...

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