Bloomberg: Blackstone rental home bonds have highest LTV
Bloomberg real estate ace Jody Shenn reports that Blackstone’s rental home bonds have the highest Loan-to-Value of any on the market.
Loan to BPO values of 79% in offering, vs. 65% for Silver Bay deal in market, 70% for second Colony American Homes issuance, 75% for first 2014 deal by Blackstone’s Invitation Homes deal, according to ratings firm presale reports.
Issuer indicated principal-only Class G included in structure to comply with European Banking Authority risk-retention regulations, according to Kroll.
“While risk retention can be viewed as a credit positive,” Kroll [reports] “does not believe it mitigates the impact of increased leverage, as the entire loan proceeds will need to be refinanced at maturity.”