TBE, a master servicer of European commercial mortgage-backed transactions, is set to expand its business across Europe. The Brussels-based company, which was formed by four European banks, has been re-launched after three of the banks sold their stakes to Crown Mortgage Management. The fourth bank, Fortis Bank, and Crown Mortgage are now equal partners in the venture, says Jonathan Naylor, group operations and development director at Crown. The other banks were ING, Bear Stearns and Dexia Bank.
TBE is the master servicer on eight of the 12 existing securitizations in Belgium. The company was formed several years ago because, unlike the rest of Europe, Belgium requires a dedicated master servicer on securitizations, Naylor notes. Now that the transaction has been completed, TBE will work to expand its servicing business across Europe as securitization becomes a larger slice of the commercial real estate market.
Most originators typically perform their own loan servicing. While they can still do this, having a master servicer in place will help to make sure all of the functions will be carried out appropriately. TBE expects to go to the agencies in the next few months to obtain a rating. The rating agencies are supportive of the development of a master servicing market in Europe because having one in place reduces the risk associated with a transaction, Naylor says.