LONDON - Global law firm Reed Smith has advised Starz Real Estate on the first commercial real estate collateralized loan obligation (CRE CLO) in Europe, Starz Mortgage Securities 2021-1, via Credit Suisse. 

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The £219m GBP-equivalent dual currency transaction which has now closed, represents a significant milestone for the commercial real estate market in Europe.

The CRE CLO is backed by a portfolio of nine commercial mortgage loans originated by Starz Mortgage Capital and Starz ICAV (for and on behalf of Starz European Loan Fund I), and is secured by 17 properties in the UK and Europe – 84.8% are GBP-denominated across eight regions throughout the UK, 15.2% are EUR-denominated, across Spain (5.8%), Ireland (4.8%), and the Netherlands (4.6%).

S&P Global Ratings Europe Limited, a division of S&P Global Inc. (S&P) and Kroll Bond Rating Agency UK Limited (KBRA) have assigned ratings to ten classes of Starz Mortgage Securities 2021-1 DAC, a static CRE CLO transaction.