First Title Insurance has provided title insurance for the largest ever multi-family commercial mortgage-backed securities transaction in Europe.
The policies will protect the security agent against certain defects in title or priority that may exist within the portfolio of properties.
This €5.4 billion debt issue, arranged by Citigroup and Barclays Capital and issued by Deutsche Annington, has been secured against 164,365 residential apartments spread throughout Germany.
The debt has been secured by 800 separate mortgages, each one insured by First Title with a different policy.
The transaction marks the first time that title insurance has ever been used for this purpose in Germany.
"This transaction is another great example of how title insurance can be used by real estate investors and their financiers to structure deals in better ways," First Title Insurance’s chief executive Phillip Oldcorn said.
"In Europe, title insurance can not only be used in emerging markets where land registry data is often unreliable, but also in sophisticated, mature markets such as Germany,” he added.
By Kathryn O’Meara
