Bank of America has launched a £220 million commercial mortgage-backed security secured against a portfolio of flexible offices owned by Fora.
The CMBS is part of a £520 million senior loan, with the other £300 million provided by BNP Paribas, Blackstone Mortgage Trust and Morgan Stanley, backed by a portfolio of 19 properties valued at £867 million. The loan is for three years with the option to extend the maturity twice by one year.
One of the properties, Chancery House in London, may be refinanced by a new lender or existing lender after the closing date but before May 2025.
The securitisation, called Hera Financing 2024-1 DAC, comprises £89.8 million of class-A notes, rated AAA by S&P and £30 million class-B notes, rated AA-.
The Fora platform was created via merger between Brockton Capital’s Fora and Blackstone's The Office Group in 2022. At the end of that year, Fora’s portfolio comprised nine freeholds or long leaseholds with a total of 264,124 square feet and six leaseholds with a total of 262,079 square feet.
Hera Financing 2024-1 DAC is the third European commercial mortgage-backed securitisation this year. Barclays launched a £537.8 million CMBS backed by last-mile logistics owned by Blackstone in April, and in May data centre developer and operator Vantage launched Europe’s first data centre CMBS, securitising a £600 million loan.