$900 million Mortgage Bond 2 3 4 Loan Metrics 1. $900 million - - PowerPoint PPT Presentation

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$900 million Mortgage Bond 2 3 4 Loan Metrics 1. $900 million - - PowerPoint PPT Presentation

Aug 08, 2023 160 likes •243 views

West Edmonton Mall 4.2 million sf 500 Tenants $900 million Mortgage Bond 2 3 4 Loan Metrics 1. $900 million first Mortgage Bond 2. 10 year term 3. 30 year amortization overall 2 Tranches 4. 4.16% interest rate 5. 55% LTV

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West Edmonton Mall 4.2 million sf 500 Tenants $900 million Mortgage Bond

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Loan Metrics

1. $900 million first Mortgage Bond 2. 10 year term 3. 30 year amortization overall – 2 Tranches 4. 4.16% interest rate 5. 55% LTV 1.80x DSC “A” rated by DBRS 6. Non-Recourse

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Challenges

  • 1. Non-Recourse

Non-Traditional Real Estate Non-Institutional Ownership

  • 2. Edmonton – Highest Retail sf per capita in Canada
  • 3. Edmonton – Variable Economy
  • 4. Average Lease Term – 5 years
  • 5. Credit Risk – Sears & HBC / CRU Tenant Rent Affordability
  • 6. Changing Face of Retail – On-Line Shopping ?
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Mitigants/Solutions

  • 1. Dominant Retail in Edmonton / Experienced Management
  • 2. Proven Property Performance
  • 3. 80% National Retailers & Diversified Tenant Profile
  • 4. Conservative Loan Metrics
  • 5. Satisfactory “Stress Testing” ( LTV, DSC, Cap. Rates )
  • 6. Strong Loan Structure – “Cash Lockbox” & “Reserve Fund”