Financing Corporate Real Estate Through CMBS

Companies that own the properties they occupy and wish to finance these on a secured basis can do so without using up valuable capacity in the bank market by issuing Commercial Mortgage-Backed Securities (CBMS), or borrowing from a lender who will refinance through the CMBS market. Provided the properties are 'liquid' in terms of the ease both of finding replacement tenants and selling the properties then unrated or lower rated companies can do this as easily as investment grade companies.

Clive Bull, chairman of the board of governors, CMSA Europe (Commercial Mortgage Securitization Association) and director, European commercial real estate, Deutsche Bank AG explains why Commercial Mortgage-Backed Securitization has taken corporate Europe by storm.