KBRA was notified of the sale of two properties in Agora Securities UK 2021 DAC, a CMBS single borrower transaction secured by nine properties located in the United Kingdom (UK). The issuer confirmed the sales of Cyfartha Retail Park and The Orchard Centre which completed on 3 September 2024 for an aggregated release amount of £60.2 million. The proceeds are expected to pay down the senior loan balance by 28.5% to £151.3 million from £211.5 million in accordance with the transaction documents in a pro rata manner at the next interest payment date (IPD) on 22 October 2024.
The collateral for the transaction at closing consisted of a limited recourse, first lien £211.5 million mortgage loan secured by the borrowers' freehold and leasehold interests in nine retail warehouse assets in the UK. The loan is structured with the following release premiums: 110.0% of the ALA for the first five property disposals and 125.0% of the ALA for any additional property disposals. The release price for the two properties was 110.0%. As a result of the two property sales, KBRA expects the KLTV to decline to 60.6% from 63.5% based on KBRA's analysis of the transaction as of the last review in June 2024.
The remaining seven properties are located in individual markets throughout five regions in the UK. The reported weighted average vacancy rate is expected to decrease to 1.2% from 1.9% as of the July servicer report as a result of the property sales.
The paydowns will not result in rating actions at this time but will be considered in our ongoing monitoring and future surveillance reviews.
Related Publications
- CMBS: European CMBS Rating Methodology
- ESG Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- Agora Securities UK 2021 DAC Pre-Sale Report
- Agora Securities UK 2021 DAC Surveillance Report
About KBRA
KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA's ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
Doc ID: 1005844
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Contacts:
Matthew Horner, Senior Director
+44 20-8148-1082
matthew.horner@kbra.com
Yee Cent Wong, Co-Head of Europe
+353 1 588 1260
yee.cent.wong@kbra.com
Business Development Contacts
Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com
